AUD/USD Forecast: Holding on higher ground, bullish potential limited

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.6128

Chinese data surprised to the upside, investors took it with a pinch of salt.
Australian final March Manufacturing PMI to be out this Wednesday.
AUD/USD holding above the 0.6100 figure, at risk of losing the level.

The AUD/USD pair has fallen to 0.6069 this Tuesday, trimming most of its daily losses ahead of the close to finish the day marginally lower around 0.6130. The pair found temporal support at the beginning of the day on better-than-anticipated Chinese data, as the official March NBS Manufacturing PMI came in at 52, bouncing from 35.7 and better than the 45 expected. The Non-Manufacturing PMI for the same month came in at 52.3 from 29.6 and against the 37.8 expected. The numbers seem too optimistic considering where the economy is coming from, and the market took them with a pinch of salt.

During the upcoming Asian session, Australia will release the AIG Performance of Manufacturing Index and the final version of the Commonwealth Bank Manufacturing PMI, both for March.

AUD/USD short-term technical outlook

The AUD/USD pair is holding on higher ground, although intraday technical readings indicate a limited bullish potential. In the 4-hour chart, it is hovering around its 20 and 100 SMA, with the shortest advancing just above the larger one. Technical indicators have recovered from near their midlines, but remain below their recent highs. The bullish potential will be clearer on a break above 0.6200.

Support levels: 0.6110 0.6070 0.6030

Resistance levels: 0.6160 0.6200 0.6240

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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