Market Overview

AUD/USD Forecast: Struggling To Rally Beyond The 0.6900 Threshold

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Key Points:

  • Chinese Caixin Manufacturing PMI improved in June to 51.2, beating the market’s forecast of 50.5.
  • Australian Trade Balance foreseen posting a surplus of 9000 million in May.
  • AUD/USD neutral-to-bullish in the short-term could reach 0.7000.

The AUD/USD pair surged to 0.6943, stabilizing later in the day around the 0.6910 price zone, where it’s ending the day, helped by the positive tone of US equities. The pair fell to an intraday low of 0.6876 during European trading hours, quickly recovering from the level. Weird enough, the pair was unable to extend its gains beyond the Asian high despite the broad dollar’s weakness.

Australia published May Building Permits, which fell by 16.4% in the month, missing the market’s expectations, and declined 11.6% when compared to a year earlier. China published the Caixin Manufacturing PMI, which improved in June to 51.2, beating the market’s forecast of 50.5. This Thursday, Australia will publish its May Trade Balance, seen posting a surplus of 9000 million.

AUD/USD Short-Term Technical Outlook

The AUD/USD pair is neutral-to-bullish in the short-term, and could still reach the 0.7000 price zone. In the 4-hour chart, it has settled above all of its moving averages, with the shorter ones still directionless. Technical indicators, in the meantime, remain within positive levels but with limited directional strength. Chances of a bullish extension will decrease once below 0.6895, the immediate support.

Support levels: 0.6895 0.6850 0.6810

Resistance levels: 0.6940 0.6980 0.7010

 

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Posted-In: AUD/UDS Chinese Caixin ManufacturingForex Markets