The AUD/USD pair is experiencing upward momentum for the second consecutive day

Andrey Goilov RoboForex

The AUD/USD pair is experiencing upward momentum for the second consecutive day, reaching a one-week high near 0.6453 on Tuesday. This positive movement comes after a period of rapid decline and is supported by encouraging economic data from Australia.

The latest manufacturing PMI report for April significantly contributed to the Australian dollar's appreciation. It showed an increase to 49.9 points, up from 47.3 the previous month. This improvement brings the manufacturing sector close to the critical 50.0 threshold, distinguishing between the industry's growth and contraction. Additionally, the services PMI reported the most robust expansion in the last three months, and the private sector experienced its fastest growth in two years during April.

These robust economic reports not only indicate a resilient economy but also carry pro-inflationary implications. They bolster the outlook that the Reserve Bank of Australia (RBA) may maintain higher interest rates for an extended period to manage inflationary pressures effectively.

Investors will also pay attention to the upcoming release of inflation statistics later in the week, which will provide further insights into the economic factors influencing the RBA's monetary policy decisions.

Moreover, the Australian dollar's gains were further supported by a reduction in investor concerns over geopolitical risks in the Middle East, contributing to a more favourable risk environment.

Technical analysis of AUD/USD

On the H4 chart, the AUD/USD pair completed a declining wave to 0.6362. A corrective movement towards 0.6471 is underway. Upon completion of this correction, a continuation of the downward trend towards 0.6300 is anticipated. The MACD indicator supports this bearish outlook despite its signal line being above zero, which typically suggests growth potential.

On the H1 chart, a consolidation range has been formed around 0.6417. A breakout above this range could lead to a rise towards 0.6471. Following this peak, a new downward wave to 0.6363 is expected. Breaking below this level may pave the way to reach 0.6300. The Stochastic oscillator, with its signal line currently below 80 and pointing downwards, confirms this potential downward trajectory.

Author

Andrey Goilov

RoboForex

Higher economic education. Andrey Goilov has been working on the Forex market since 2005. A financial analyst and successful trader. Preference in trading is highly volatile instruments.

EUR/USD extends its optimism past 1.1900

EUR/USD retains a firm underlying bid, surpassing the 1.1900 mark as the NA session draws to a close on Monday. The pair’s persistent uptrend comes as the US Dollar remains on the defensive, with traders staying cautious ahead of upcoming US NFP prints and CPI data.

GBP/USD hits three-day peaks, targets 1.3700

GBP/USD is clocking decent gains at the start of the week, advancing to three-day highs near 1.3670 and building on Friday’s solid performance. The better tone in the British Pound comes on the back of the intense sekk-off in the Greenback and despite re-emerging signs of a fresh government crisis in the UK.

Gold picks up pace, retargets $5,100

Gold gathers fresh steam, challenging daily highs en route to the $5,100 mark per troy ounce in the latter part of Monday’s session. The precious metal finds support from fresh signs of continued buying by the PBoC, while expectations that the Fed could lean more dovish also collaborate with the uptick.

XRP struggles around $1.40 despite institutional inflows

Ripple (XRP) is extending its intraday decline to around $1.40 at the time of writing on Monday amid growing pressure from the retail market and risk-off sentiment that continues to keep investors on the sidelines.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.