AUD/USD Current Price: 0.7142

  • Australia starts a busy week reporting manufacturing and inflation data.
  •  Victoria’ officials toughen its social distancing measures after announcing a state of disaster.
  • AUD/USD retains its long-term bullish bias but could fall in the upcoming sessions.

The AUD/USD pair pulled back from 0.7226, its highest in over a year, to finish Friday in the red, but the week in the green at 0.7142. The Aussie found support on upbeat Chinese data, as the July NBS Manufacturing PMI printed 51.1 against 50.7 expected, while the Non-Manufacturing PMI for the same month, printed at 54.2 vs. 51.2 expected. Australian data, however, missed expectations, with Producer Prices down 1.2% in the second quarter of the year.

Weekend news were worrisome as Victoria’ officials toughen its social distancing measures after announcing a state of disaster. The measures come after the Melbourne area reporter over 670 new coronavirus cases on Sunday and will extend the current lockdown for another six weeks. The country will start the week reporting the July AIG Performance of Manufacturing Index, previously at 51.5, and TD Securities Inflation for the same month. The pandemic developments, however, could take their toll on the Aussie and overshadow macroeconomic figures.

AUD/USD short-term technical outlook

According to the daily chart, the AUD/USD pair retains its bullish stance, as the pair continues to develop above a firmly bullish 20 DMA, which advances above the larger ones. Technical indicators have lost their bullish strength, but remain well above their midlines. In the 4-hour chart, however, the risk is skewed to the downside, as the pair broke below its 20 SMA, while technical indicators stabilized within negative levels.  Further declines are to be expected on a break below 0.7120, Thursday low and the immediate support level.

Support levels: 0.7120 0.7070 0.7030

Resistance levels: 0.7180 0.7225 0.7260

View Live Chart for the AUD/USD

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis


Latest Forex Analysis

Editors’ Picks

EUR/USD rises above 1.18 as dollar drops with yields

EUR/USD is trading above 1.18, as the dollar declines alongside yields, following a large US debt issuance. Weekly jobless claims and the ongoing fiscal impasse in Washington are eyed.

EUR/USD News

GBP/USD advances towards 1.31 amid dollar weakness

GBP/USD is recovering as the dollar cedes ground. Investors are shrugging off concerns about the downfall in the British economy and concerns about the furlough scheme. 

GBP/USD News

Gold: $1907 is the last straw for the XAU/USD bulls

Gold consolidates the $90 bounce below $1950, having witnessed good two-way volatility on Wednesday. Falling US Treasury yields continue to pressure the US dollar across the board, supporting the yieldless gold.

Gold News

Forex Today: Dollar retreats after auction, gold rising amid fiscal impasse, focus on jobless claims

The US dollar is on the back foot after the large bond auction and as optimism prevails in markets despite the fiscal impasse in Washington. Sino-American tensions and a US-EU are eyed ahead of weekly jobless claims.

Read more

WTI: Bulls attack $43.00 inside short-term rising channel

WTI defies the previous day’s pullback from $43.12 with a bounce off $42.76. The energy benchmark flaunted the biggest gains in a month on Wednesday while keeping a one-week-old ascending trend channel formation.

Oil News

Forex Majors

Cryptocurrencies

Signatures