AUD/USD outlook: Aussie remains in red as weak data boost growth slowdown fears

Slobodan Drvenica Windsor Brokers

AUD/USD

The Aussie dollar holds in red for the second consecutive day, following a double-rejection under psychological 0.70 barrier and came under increased pressure on downbeat economic data.

Australia’s composite PMI which tracks the activity in manufacturing and services sectors, fell to 52.6 in June from 52.9 in May, raising fears about economic growth slowdown.

Fresh weakness pressures June low at 0.6850 and more significant May’s low at 0.6828 (the lowest since June 2020), with break here to signal an end of six-week corrective phase and continuation of larger downtrend.

Daily MA’s are in full negative configuration, bearish momentum remains strong and RSI is heading south, while weekly studies are also bearish that keeps the downside at risk, along with negative fundamentals highlighted by soaring inflation and recession fears.

Falling 10DMA marks solid resistance at 0.6955, with near-term bias to stay with bears while the price action stays below 0.70 barrier.

Res: 0.6923; 0.6955; 0.7000; 0.7055.
Sup: 0.6869; 0.6850; 0.6828; 0.6798.

Interested in AUD/USD technicals? Check out the key levels

1. R3 0.7069
2. R2 0.7022
3. R1 0.6974
PP 0.6927
1. S1 0.688
2. S2 0.6833
3. S3 0.6785

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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