AUD/USD Analysis: pressure mounts on the Aussie

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.6758

Australian Services PMI fell into contraction territory, Manufacturing activity also eased.
The poor performance of Wall Street weighed on the Aussie.
AUD/USD settled lower in range, at risk of breaking below 0.7640 support.

The AUD/USD pair has lost some ground this Thursday, ending the day with losses in the 0.6760 price zone. The Aussie came under selling pressure earlier in the day, following the release of dismal local data. The Commonwealth Bank Services PMI contracted to 49.2 in August, according to preliminary estimates, missing the market’s expectation of 51.8. The Manufacturing Index came in at 51.3, better than the 51.0 forecast but below the previous 51.6 Finally, the Composite PMI came in at 49.5, well below the expected 51.5. The pair enjoyed a brief moment of relief when Wall Street opened, but the rally was short-lived as well as that of equities, which came under selling pressure after hawkish words from Fed’s officials. The Australian macroeconomic calendar will remain empty this Friday.

AUD/USD short-term technical outlook

The AUD/USD pair is trading at the lower end of its recent range, but still holding above 0.6740, a strong static support level. In the 4 hours chart, the risk is skewed to the downside despite the absence of directional momentum, as the pair is developing below all of its moving averages, while technical indicators head nowhere within negative levels. The pair could change course on a firm recovery beyond 0.6800, quite unlikely in the current macroeconomic scenario.

Support levels: 0.6740 0.6700 0.6675

Resistance levels: 0.6790 0.6820 0.6860

View Live Chart for the AUD/USD

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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