FxWirePro: AUD/USD capped below stiff resistance at 0.7455, poor Caixin China manufacturing PMI report weighs
AUD/USD trades a narrow range in the Asian session today after bouncing off strongly from PBoC led slump on Thursday. The pair has recovered from lows of 0.7371 on Thursday, but upside today capped at stiff trendline res…
AUD/USD trades a narrow range in the Asian session today after bouncing off strongly from PBoC led slump on Thursday.
The pair has recovered from lows of 0.7371 on Thursday, but upside today capped at stiff trendline resistance currently at 0.7455.
Doji formation seen in the Asian session till now, we see scope for further upside only on breaks above 0.7455 resistance.
Worse-than-expected Caixin China manufacturing PMI report disappointed markets and weighed on the investors’ sentiment, capping upside in the Aussie.
Data released earlier showed China Caixin Manufacturing PMI stood at 48.6 vs. 49.2 expected and 49.2 last.
However, extended risk-on rally in the Asian equities underpins the demand for the higher-yielding currency AUD, which is likely to keep downside limited.
The pair finds immediate support at 0.7437 (session lows), then 0.7427 (20-DMA) and 0.7411 (5-DMA).
On the upside resistance is seen at 0.7455 (trendline), 0.7463 (June 7th high) and 0.7472 (June 30th high).
Later in the NY session, US manufacturing reports from both the Markit and ISM will be in focus for fresh cues on the major.
Techs are inconclusive. We prefer to wait for clear technical indication to take any call.
