AUD/USD Forecast: Holding in range, bulls still surging on dips

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.6896

Chinese official PMIs beat expectations in June, indicating economic expansion.
Australia will release the June AIG Performance of Manufacturing Index in the next session.
AUD/USD neutral in the short-term, the downside seems limited.

The AUD/USD pair neared the 0.6900 figure this Tuesday, advancing within range. Australia published May Private Sector Credit figures at the beginning of the day, which was down by 0.1% in the month and up by 3.2% in the year. More relevant, China published the NBS Manufacturing PMI, which was up to 50.9 in June, better than the previous 50.6. The Non-Manufacturing PMI recovered from 53.6 to 54.4. Gold prices provided further support to the Aussie, as the bright metal reached a fresh multi-year high of 1,785.96.

This Wednesday, Australia will publish May Building Permits, seen falling by 10% in the month, and the AIG Performance of Manufacturing Index for June, previously at 41.6. China, on the other hand, will publish the Caixin Manufacturing PMI for June, foreseen at 50.5 from 50.7 in May.

AUD/USD short-term technical outlook

The AUD/USD pair is holding on to its neutral stance in the short-term. The 4-hour chart shows that the pair is trading around flat 20 and 100 SMA, while technical indicators stand within neutral levels. Nevertheless, the bearish potential continues to be limited, with intraday dips attracting buyers. The pair needs to advance beyond 0.6925 to gain some bullish potential and approach to 0.7000 threshold.

Support levels: 0.6850 0.6810 0.6770

Resistance levels: 0.6925 0.6970 0.7010

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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