AUD/USD extends recovery to mid-0.67s as USD stays under pressure


  • Disappointing data from the United States (US) weigh on the USD.
  • US Dollar Index slumps below the 99 handle on Thursday.
  • Coming up: August retail sales data from Australia.

The AUD/USD pair gathered bullish momentum during the American trading hours on Thursday and continued to erase the losses it suffered earlier in the week after the Reserve Bank of Australia announced 25 basis points rate cut and adopted a dovish tone. As of writing, the pair was up 0.62% on the day at 0.6745.

Weak data continue to hurt the USD

The pair's decisive rebound seems to be fueled by the intense selling pressure surrounding the Greenback.

Today's data from the United States (US) revealed that the economic activity in the service sector expanded at a much slower pace than expected with the Institue for Supply Management's (ISM) Non-Manufacturing Purchasing Managers' Index (PMI) dropping to 52.6 from 56.4.

Assessing this week's disappointing PMI figures, "Both key ISM surveys are pointing to a major slowdown in US growth rates," said ING analysts.

"We are forecasting US GDP growth of 1.3% for 2020 versus a consensus estimate of 1.8% with the clear implication that the Federal Reserve has more work to do to support the economy."

Ahead of Friday's critical labour market data, the US Dollar Index fell to 98.70 area in the last hour to reflect the broad-based USD weakness.

During the Asian trading hours, retail sales data from Australia, which is expected to rebound to +0.5% in August from -0.1% in July, will be looked upon for fresh impetus.

Technical levels to watch for

AUD/USD

Overview
Today last price 0.6746
Today Daily Change 0.0040
Today Daily Change % 0.60
Today daily open 0.6706
 
Trends
Daily SMA20 0.6805
Daily SMA50 0.6795
Daily SMA100 0.6876
Daily SMA200 0.699
 
Levels
Previous Daily High 0.6719
Previous Daily Low 0.667
Previous Weekly High 0.6806
Previous Weekly Low 0.6738
Previous Monthly High 0.6895
Previous Monthly Low 0.6687
Daily Fibonacci 38.2% 0.67
Daily Fibonacci 61.8% 0.6689
Daily Pivot Point S1 0.6678
Daily Pivot Point S2 0.665
Daily Pivot Point S3 0.6629
Daily Pivot Point R1 0.6726
Daily Pivot Point R2 0.6747
Daily Pivot Point R3 0.6775

 

 

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