AUD/USD analysis: bulls trying again to break the range

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7434

Aussie underpinned by better market mood, rallying equities.
More Australian and Chinese data in the docket for this Wednesday.

The AUD/USD pair struggled for direction during the first half of the day, unable to rally despite broad dollar's weakness amid mixed Asian data. Data coming from Australia showed that Building Permits soared in June, up 6.4% MoM, while New Home Sales, according to the HIA increased by 2.2%, missing expectations of 4.5%, although much better than the previous -4.4%. Chinese official manufacturing PMI came in at 51.2 for July slightly below the market's expectations and down from the previous 51.5, while the non-manufacturing PMI was also a miss, resulting in 54.0 vs. the expected 55.0. The Aussie got an unexpected boost from news that the US and China may resume talks, with the pair heading into the Asian opening near the 0.7740/50 static resistance area. Australia will release the AIG Performance of Manufacturing Index for July during the upcoming Asian session, previously at 57.4, while China will offer the Caixin Manufacturing PMI for the same month, forecasted to come at 50.8 from the previous 51.0. The short-term picture for the pair is barely positive, as the price remains within familiar levels, but at least at the time being is advancing above a congestion of moving averages, while technical indicators lost upward strength, the Momentum already heading lower and the RSI flat at around 61.

Support levels: 0.7370 0.7330 0.7300

Resistance levels: 0.7445 0.7490 0.7520

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Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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