The Australian dollar has found a bid against the U.S. dollar. The AUD/USD currency exchange rate looks to extend recent gains as the greenback remains broadly weaker. Price action is finding resistance at the two hundred (200) day simple moving average.
Today’s economic calendar has some Markit manufacturing purchasing managers’ indices (PMI). Australia is publishing their monthly home loans data.
In the euro area, their largest economy, Germany is publishing the monthly manufacturing purchasing managers’ index. The United Kingdom is also releasing their monthly manufacturing purchasing managers’ index.
The United States will publish their Markit manufacturing purchasing managers’ index and the Institute for Supply Management (ISM) is releasing their manufacturing purchasing managers’ index.
The Australian dollar has a lot of exposure to Chinese data as well. Therefore the private monthly Caixin manufacturing purchasing managers’ index will be watched.
Daily Australian Dollar Technical Analysis
Looking at the above daily MT 4 chart, the 200 day simple moving average is capping gains and the short-term twenty (20) day simple moving average is beginning to slope lower.
The technical indicators are moving away from overbought which could signal some more gains for the Australian dollar instead of a downward correction.
The first key downside barrier lines up at 0.72 and while above this level, AUD/USD currency exchange rate remains constructive. With that said, in a narrower view, while price action remains above 0.7470, the bulls should remain in control of this Forex market.
A daily close below the downside barrier lining up at 0.7470 opens the door to challenge the technical support at 0.74 before the support at 0.7330 comes into view.
On the upside, if the AUD/USD Forex market sees a daily close above the monthly high price point at 0.7550, the door would then open for a challenge of the upside level lining up at 0.7610 before bringing the next layer of technical resistance at 0.77 into focus.