Chart - Courtesy Trading View
Spot Analysis:
AUD/USD was trading 0.31% lower on the day at 0.6818 at around 05:30 GMT
Previous Week's High/ Low: 0.7008/ 0.6856
Previous Session's High/ Low: 0.6903/ 0.6834
Fundamental Overview:
The Caixin manufacturing purchasing managers index (PMI) printed at 49.5 for August, compared with July’s reading of 50.4, missing expectations for a reading of 50.2.
Chinese manufacturing activity fell for a second straight month, slipping into contraction in August, as COVID lockdowns and energy crunch weighed on activity.
Investors have turned risk-averse ahead of the US ISM Manufacturing PMI data, weighing on the Aussie.
Focus now on the US ISM Manufacturing PMI for August, expected 52.8 versus 52.0 prior, ahead of Friday’s US Nonfarm Payrolls (NFP).
Technical Analysis:
- AUD/USD has plunged below the daily cloud
- Momentum is bearish, stochs and RSI are sharply lower
- Price action is below cloud and Chikou span is biased lower
- ADX and MACD support downside in the pair
Major Support and Resistance Levels:
Support - 0.6778 (Lower BB), Resistance - 0.6862 (5-DMA)
Summary: AUD/USD poised for further downside. Yearly lows at 0.6681 in sight.
