AUD Price Prediction: Critical Crossroads for Aussie. Australian downturn is limited by data from China and Australia’s manufacturing PMI.
AUD Key Considerations
Confidence around the US debt ceiling has not been sufficient to support the Australian dollar. While Fed speakers have continued to take a hard line on monetary policy.
Australian fall is limited by statistics from China and Australia’s manufacturing PMI.
Attention is on US employment and PMI figures.
Bear signal breach is looking for further proof.
AUD FUNDAMENTAL CONTEXT
After the proposal to raise the US debt ceiling was approved by the House. the AUD experienced an up and down day the previous day. Oscillating close to the 0.6500 level. By a vote of 314–117, Republicans and Democrats teamed up to advance the agreement. The Senate, wherein approval is practically certain, will now consider the agreement. This positivity encouraged risk sentiment, but Fed officials again pushed the hardline l, driving up the dollar’s bid.
The manufacturing PMI of both Australia as well as China, a major importer of Australian goods. Overtook forecasts on Thursday morning, which was good news for the Aussie currency (refer to the economic diary under). Despite the Caixin survey allegedly offering a more trustworthy private sector gauge, which markets have now endorsed. The NBS manufacturing PMI slipped Wednesday despite this. Another advantage for the AUD is that the YoY decrease in commodity prices has been more modest than anticipated.
The AUD Economic Diary
The economic docket includes important job figures and the ISM manufacturing PMI from a USD view. Both are thought of as key indicators and may offer significant insight prior to the next Non-Farm Payroll data. Although the recent past shows that the ADP print is away not a reliable NFP guage. Worse workforce figures combined with a falling production sector might point towards a lesser NFP total for tomorrow.
Technical Perspective
Daily price movement in the AUDUSD duo continues to be focus on the latest bear signal breakout. The pair is still supported around the psychological barrier of 0.6500 despite bears pushing under flag support. A selloff into successive support zones might really start after a daily candle affirmation conclusion. The most probable trigger regarding confirmation of the aforesaid or a rise in the AUD will come from US jobs statistics.
Important Key Levels
Resistance levels:
- 0.6620
- 0.6565
Support levels:
- 0.6500
- 0.6387
