AUD/USD extends slide to fresh four-day lows near 0.6430
- New Home Sales in Australia declined by 21.1% in March.
- US Dollar Index stays relatively calm below 99.
- US ISM Manufacturing PMI is expected to fall to 36.9 in April.
The AUD/USD pair fell sharply on disappointing data during the Asian trading hours and seems to be struggling to shake off the bearish pressure. As of writing, the pair was trading at its lowest level since April 27th at 0.6437, losing 1.13% on a daily basis.
The data published by Australia's Housing Industry Association on Friday revealed that New Homes Sales in March declined by 21.1% on a monthly basis following February's increase of 6.2%. Additionally, the Reserve Bank of Australia's Commodity Index fell by 8.1% on a yearly basis in April.
Attention shifts to US PMI data
In the second half of the day, the IHS Markit will publish the April final Manufacturing PMI for the US. More importantly, the ISM Manufacturing PMI will be released as well. Analysts expect the ISM PMI data to slump to 36.9 in April from 49.1 in March to show a contraction in the sector's economic activity at a faster pace.
Ahead of these data, the US Dollar Index is posting small daily losses near the 99 handle. The USD's reaction to the data and changes in risk sentiment could impact the pair's movements during the American session.
Technical levels to watch for
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
