AUD/USD Current Price: 0.7142
- Australia starts a busy week reporting manufacturing and inflation data.
- Victoria’ officials toughen its social distancing measures after announcing a state of disaster.
- AUD/USD retains its long-term bullish bias but could fall in the upcoming sessions.
The AUD/USD pair pulled back from 0.7226, its highest in over a year, to finish Friday in the red, but the week in the green at 0.7142. The Aussie found support on upbeat Chinese data, as the July NBS Manufacturing PMI printed 51.1 against 50.7 expected, while the Non-Manufacturing PMI for the same month, printed at 54.2 vs. 51.2 expected. Australian data, however, missed expectations, with Producer Prices down 1.2% in the second quarter of the year.
Weekend news were worrisome as Victoria’ officials toughen its social distancing measures after announcing a state of disaster. The measures come after the Melbourne area reporter over 670 new coronavirus cases on Sunday and will extend the current lockdown for another six weeks. The country will start the week reporting the July AIG Performance of Manufacturing Index, previously at 51.5, and TD Securities Inflation for the same month. The pandemic developments, however, could take their toll on the Aussie and overshadow macroeconomic figures.
AUD/USD short-term technical outlook
According to the daily chart, the AUD/USD pair retains its bullish stance, as the pair continues to develop above a firmly bullish 20 DMA, which advances above the larger ones. Technical indicators have lost their bullish strength, but remain well above their midlines. In the 4-hour chart, however, the risk is skewed to the downside, as the pair broke below its 20 SMA, while technical indicators stabilized within negative levels. Further declines are to be expected on a break below 0.7120, Thursday low and the immediate support level.
Support levels: 0.7120 0.7070 0.7030
Resistance levels: 0.7180 0.7225 0.7260
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin breaks all-time high above $106,000, triggers nearly $120 million in liquidations
Bitcoin hit a record high above $106,000 on Monday, after recent developments on President-elect Donald Trump’s strategic Bitcoin reserve and demand from institutional traders.
EUR/USD holds near 1.0500 ahead of EU PMI data
EUR/USD stays relatively quiet and fluctuates in a narrow channel at around 1.0500 on Monday. ECB President Lagarde reiterated that they will continue to cut rates if data confirm disinflation is on track. Investors await EU PMI data after German PMI readings arrived mixed.
GBP/USD edges higher to 1.2630, looks to UK/US PMIs for some impetus
The GBP/USD pair ticks higher at the start of a busy week and for now, seems to have snapped a three-day losing streak to the 1.2600 neighborhood, or over a two-week low touched on Friday.
Gold price sticks to modest intraday gains above $2,650 amid mixed cues
Gold price stages a modest recovery from a one-week trough touched earlier this Monday, albeit it lacks follow-through buying and currently trades around the $2,655 region.
Can markets keep conquering record highs?
Equity markets are charging to new record highs, with the S&P 500 up 28% year-to-date and the NASDAQ Composite crossing the key 20,000 mark, up 34% this year. The rally is underpinned by a potent mix of drivers.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.