- Upbeat data from China helps the AUD gather strength today.
- US Dollar Index continues to recover Wednesday's losses.
- New home sales in the U.S. surprise to the upside.
After taking advantage of the broad-based USD weakness and making a decisive break above the 0.72 handle on Wednesday, the AUD/USD pair continued to climb and touched its highest level since early December at 0.7296. As of writing, the pair was trading at 0.7283, adding 0.47% on the day.
According to the monthly report published by China's Federation of Logistics and Purchasing (CFLP), the business activity in the non-manufacturing sector expanded at a more robust pace than expected in January with the headline PMI improving to 54.7 vs the market expectation of 53.9. Furthermore, the Manufacturing PMI also came in slightly above the analysts' estimate to ease concerns over the economic slowdown in China and help the AUD outperform its rivals.
Additionally, the greenback stayed under pressure during the first half of the day on Thursday as investors continued to price the dovish shift in the FOMC's policy outlook. However, with month end flows helping the greenback gain traction, the US Dollar Index erased its daily losses and was last up 0.13% on the day at 95.53. Meanwhile, the U.S. Census Bureau reported that new home sales in November increased by 16.9% to provide an additional boost to the buck.
In the early trading hours of the Asian session, the AiG's Performance of Manufacturing Index from Australia will be looked upon for fresh impetus.
Key technical levels
AUD/USD
Overview:
Today Last Price: 0.7283
Today Daily change %: 0.47%
Today Daily Open: 0.7249
Trends:
Daily SMA20: 0.7159
Daily SMA50: 0.7168
Daily SMA100: 0.7172
Daily SMA200: 0.7295
Levels:
Previous Daily High: 0.7273
Previous Daily Low: 0.7143
Previous Weekly High: 0.7185
Previous Weekly Low: 0.7076
Previous Monthly High: 0.7394
Previous Monthly Low: 0.7014
Daily Fibonacci 38.2%: 0.7223
Daily Fibonacci 61.8%: 0.7193
Daily Pivot Point S1: 0.717
Daily Pivot Point S2: 0.7092
Daily Pivot Point S3: 0.704
Daily Pivot Point R1: 0.73
Daily Pivot Point R2: 0.7352
Daily Pivot Point R3: 0.7431
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD remained bid above 0.6500
AUD/USD extended further its bullish performance, advancing for the fourth session in a row on Thursday, although a sustainable breakout of the key 200-day SMA at 0.6526 still remain elusive.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.