Forex: AUD/USD in session highs above 1.0560

FXstreet.com (Barcelona) - The Aussie dollar has not only pared all the initial losses on Friday but it's also posting fresh highs above 1.0560 on Friday, as risk aversion continues to shrink.

Assessing the recent improvement of the Chinese manufacturing PMI, Christopher Vecchio. Currency Analyst at DailyFX, argues "An indicator for Chinese growth I observe, Iron Ore prices on the Singapore Mercantile Exchange, have rebounded by over +10% since December 4, suggesting that demand for base metals - the commodities needed to build infrastructure - is improving rapidly".

"There are ramifications if this trend continues: China's major trade partners could see a boost, in particular Australia; and this would alleviate growth concerns in the region, allowing the Australian Dollar to appreciate", concludes the expert.

AUDUSD is now advancing 0.32% en 1.0563 facing the next resistance at 1.0585 (high Dec.12) followed by 1.0600 (psychological level) and finally 1.0625 (high Sep.14).
On the other hand, support levels lie at 1.0505 (low Dec.13) followed by 1.0487 (MA10d) and 1.0461 (low Dec.11).