AUD/USD Forecast: Aussie retreats alongside equities
|AUD/USD Current Price: 0.6067
- Australian and Chinese March manufacturing output beat the market’s expectations.
- US stocks back under pressure amid coronavirus crisis deepening.
- AUD/USD bottomed at 0.6038, at risk of losing the 0.6000 level.
The Australian dollar gave up against the greenback this Wednesday, with the AUD/USD pair losing the 0.6100 threshold. The pair was hardly affected by macroeconomic data released during the Asian session, despite better than anticipated. The Australian AIG Performance of Manufacturing Index jumped to 53.9 from 44.3, while the Commonwealth Bank Manufacturing PMI for the same month printed 49.8 from 50.1 in February. Also, China released the Caixin Manufacturing PMI, which jumped to 50.1 from 40.3, well above the expected 46.
Commodity-linked currencies surged at the beginning of the American session, but gains were short-lived, amid prevalent demand for the American currency, and the sour tone of Wall Street, as the three major indexes closed in the red. There are no data scheduled in Australia and China this Thursday.
AUD/USD short-term technical outlook
The AUD/USD pair is trading near a daily low of 0.6038, neutral-to-bearish in the short-term. The 4-hour chart shows that it has been unable to advance beyond its 20 SMA, which is now flat, as the pair struggles around a mild-bearish 100 SMA. Technical indicators in the mentioned time-frame lack directional strength, but stand within negative levels, skewing the risk to the downside.
Support levels: 0.6035 0.6000 0.5960
Resistance levels: 0.6110 0.6150 0.6190
View Live Chart for the AUD/USD
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.