The AUDUSD pair, currently at 0.67314, has decreased in value following the release of Australia’s PMI figures for July.

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for FREE REGISTER to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level1)]

• AUD/USD takes offers to refresh intraday low after downside Australia PMI for July.

The pair currently trades last at 0.67314.

The previous day high was 0.6788 while the previous day low was 0.6722. The daily 38.2% Fib levels comes at 0.6747, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6763, expected to provide resistance.

AUD/USD renews an intraday low to around 0.6725 despite the mixed Australian activity data for July. In doing so, the Aussie pair takes clues from the below 50.0 levels of the PMIs, as well as portrays the market’s cautious mood ahead of the key week comprising top-tier data/events. That said, the upbeat jobs report from Australia failed to impress the pair buyers in the last week amid broad US Dollar strength.

Australia’s preliminary S&P Global Manufacturing PMI improves to 49.6 from 48.2 prior but the Services PMI drops below 50.0 level to 48.0 versus 50.3 prior, suggesting a contraction in the activities. With this, the S&P Global Composite PMI for July eases to 48.3 from 50.1.

It’s worth noting that the Aussie employment numbers posted a stellar jump for June in the last week and renewed bullish bias for the Reserve Bank of Australia (RBA). On the same line was the hawkish RBA Minutes for the latest monetary policy meeting where the policymakers paused the rate hike trajectory. However, the broad US Dollar strength, backed by upbeat US data and preparations for this week’s Fed meeting weighed on the AUD/USD price.

During the last week, United States housing numbers and regional manufacturing indices were mostly downbeat but an improvement in the Retail Sales Control Group for June allowed the US Dollar Index (DXY) to rebound from a 15-month low, as well as post the first weekly gain in three. That said, the greenback’s gauge versus six major currencies seesaw around 101.00 amid a sluggish start to the key week.

Previously, the upbeat prints of the University of Michigan’s (UoM) Consumer Sentiment Index and consumer inflation expectations for July helped the greenback to challenge the bearish bias. It’s worth noting, however, that the US Consumer Price Index (CPI) and Producer Price Index (PPI) for June joined the first below-expectations Nonfarm Payrolls (NFP) in 15 months to tease the Federal Reserve’s (Fed) policy pivot past July and drowned the US Dollar.

Hence, the last improvement in the US Retail Sales appears less convincing and hence this week’s top-tier US data, as well as the Fed monetary policy meeting announcement, will be crucial for clear directions of the AUD/USD pair. That said, preliminary readings of the US S&P Global PMIs for July will direct intraday moves of the Aussie pair and may keep the bears hopeful amid a likely improvement in the data versus the mostly downbeat Australia activity figures. However, major attention will be given to Australian inflation, the first readings of the US second-quarter (Q2) 2023 Gross Domestic Product (GDP) and Fed Chairman Jerome Powell’s speech for clear directions as the Fed’s 0.25% rate is almost given.

A daily closing beneath the 200-DMA level of 0.6720, as well as a seven-week-old rising support line surrounding 0.6710, becomes necessary for the AUD/USD bear’s conviction.

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.6727 at the time of writing. Pair opened at 0.6731 and is trading with a change of -0.06% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 0.6718, 50 SMA 0.6691, 100 SMA @ 0.6687 and 200 SMA @ 0.6718.

The previous day high was 0.6788 while the previous day low was 0.6722. The daily 38.2% Fib levels comes at 0.6747, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6763, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.6706, 0.6682, 0.6641
• Pivot resistance is noted at 0.6772, 0.6813, 0.6838

[/s2If]
Download Nehcap EAWe have two EAs that are operational on our LIVE accounts.

1. EA-FIX: Check out the details here. Download EA-FIX . EA-FIX is a non-grid HFT scalper.
2. EA-GROWTH: High quality low dd EA using trend grids. Download EA_GROWTHJoin Our Telegram Group

Share this:

• Facebook
• X

Like this:

Like Loading...