AUD/USD Forecast: Aussie holds above 0.6520, consolidation to persist
|AUD/USD Current Price: 0.6559
- Australian PMI shows a deterioration in November.
- Low volume amid US holidays is likely to keep price action subdued.
- The AUD/USD holds above 0.6520 and below the 200-day SMA.
The AUD/USD rose on Thursday during a quiet session with US markets closed, supported by a weaker US Dollar. The upside was limited, and consolidation is expected to continue until next week.
The Australian Judo Bank Flash Australia Composite PMI dropped in November from 47.6 to 46.4, reaching the lowest level in 27 months. The Services PMI fell to 46.3, the lowest in 26 months, and the Manufacturing PMI declined to 47.7, the lowest in 42 months.
Despite the figures, Warren Hogan, Chief Economic Advisor at Judo Bank, said: "Activity weakened in Australia's services and manufacturing sectors in November. Manufacturing has remained soft for most of 2023, although the sector does not appear to be slipping into recession at this stage."
The AUD/USD pair continued to move with a bullish bias despite the data, supported by a weaker US Dollar. Positive sentiment in global markets weighed on the Greenback. However, trading volume was low due to the holiday in the US. On Friday, activity is also expected to remain subdued. The US S&P Global PMIs are due.
AUD/USD short-term technical outlook
The AUD/USD rose on Thursday after holding above the relevant technical support at 0.6520. It continues to trade between that level and the 200-day Simple Moving Average (SMA) at 0.6590. A daily close well above that line could open the doors to further gains.
On the 4-hour chart, the price is slightly above the 20-SMA, with technical indicators favoring the downside. With limited action ahead, a decline could find support quickly around 0.6540. On the upside, 0.6570 should limit further gains. Price action appears poised to continue moving sideways around current levels ahead of the Asian session.
Support levels: 0.6545 0.6520 0.6485
Resistance levels: 0.6570 0.6590 0.6625
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