AUD/USD ascends after US ISM PMIs, eyes on Powell's Speech

In Friday's trading session, the Australian Dollar (AUD) found demand against its US counterpart, with the AUD/USD pair making gains and trading at around 0.6650. The pair's upward movement seems to be the positive PMI figures from China, which improved in November. As the Chinese economy plays a big role in the Australian economy, positive figures tend to benefit the Aussie.

On the US side, for the 12th consecutive month, the US manufacturing sector experienced a contraction in economic activity in November. The ISM Manufacturing PMI remained unchanged at 46.7, lower than the market's expectation of 47.6. Focus now turns to Jerome Powell’s speech at 16 GMT and 19 GMT at two separate events organised by Spelman College in Georgia.

In that sense, inventors will look for clues regarding the Federal Reserve (Fed) analysis of the recent data released by the US, which saw the US Consumer Price and Personal Consumption Expenditures Indexes, two important gauges of inflation for the bank decelerating in the last months.

AUD/USD levels to watch

On the AUD/USD daily chart, it is evident that the buying momentum is dominating. The Relative Strength Index (RSI) is nearing overbought territory, while the histogram of the Moving Average Convergence Divergence (MACD) showcases rising green bars, reaffirming this buying trend. 

Moreover, the AUD/USD is hovering above its 20, 100, and 200-day Simple Moving Averages (SMAs). This position is suggestive of sustained bullish momentum, as the pair is trading above these crucial markers, solidifying the control of the bulls on the broader scale.

Support Levels: 0.6600, 0.6580 (200-day SMA), 0.6500.
Resistance Levels: 0.6670, 0.6700, 0.6730.

AUD/USD daily chart