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FxWirePro: AUD/USD On Track To Test Trendline Support At 0.6855, Upbeat Australian PMI Data Fails To Impress

Chart – Courtesy Exchange View

Punctual analysis:

AUD/USD was trading down 0.44% on the day at 0.6894 around 06:00 GMT

Previous week high/low: 0.7069/ 0.6850

Previous Session High/Low: 0.6972/0.6881

Basic presentation:

The Aussie dollar largely shrugs off upbeat Purchasing Managers’ Index (PMI) data released by IHS Markit.

Australia Services PMI printed at 52.6, well above expectations of 49.1 but below the previous figure of 53.2.

The manufacturing PMI came in at 55.8, above the consensus and previous print of 54.7 and 55.7 respectively.

Investors remain concerned about the risks of a global recession amid aggressive central bank rate hikes, which keeps overall sentiment fragile.

Technical analysis:

– AUD/USD is trading below major moving averages which are trending lower

– GMMA indicator shows major and minor trend is bearish

– Volatility is high and momentum is bearish

– Price action is below the cloud and Chikou duration is biased downwards

Main support and resistance levels:

Support – 0.6850 (14th June low), Resistance – 0.6935 (5-DMA)

Summary: AUD/USD is trading with a bearish bias. The pair is on track to test trendline support at 0.6855 ahead of the June 14th low at 0.6850.