AUD/USD finds support near 0.6830, turns flat above 0.6850

AUD/USD rose on upbeat PMI data from China during the Asian session.
US Dollar Index clings to gains near 97.70 ahead of key events.
Wall Street looks to open the day in the positive territory.

Eren Sengezer FXStreet

The AUD/USD pair gained traction during the Asian session on the back of upbeat PMI data releases from China. After advancing to a daily high of 0.6886, however, the pair dropped all the way to 0.6833 pressured by the broad-based strength. Nevertheless, AUD/USD pared its losses and was last seen trading flat on the day near 0.6860.

AUD capitalizes on Chinese data, RBA commentary

On Tuesday, the NBS Manufacturing PMI in China came in at 50.9 in June, revealing that the economic activity in the manufacturing sector expanded at a stronger pace than it did in May. Moreover, the Non-Manufacturing PMI rose to 54.4 from 53.6 in May.

Meanwhile, Reserve Bank of Australia (RBA) Deputy Governor Guy Debelle reiterated that there was no need for negative interest rates and provided a boost to the AUD. "The government has been providing plenty of fiscal stimulus," Debelle added.

During the European trading hours, the selling pressure surrounding the major European currencies ramped up the demand for the greenback. With the US Dollar Index advancing to its highest level since the first week of June at 97.78, AUD/USD pulled away from its highs.

Later in the day, FOMC Chairman Jerome Powell and Treasury Secretary Steven Mnuchin testimony before the US House of Representatives Financial Services Committee will be watched closely by market participants. Additionally, the Conference Board's Consumer Confidence Index and the ISM Chicago's PMI data will be looked upon for fresh impetus.

Technical levels to watch for

AUD/USD

Overview
Today last price	0.6856
Today Daily Change	-0.0009
Today Daily Change %	-0.13
Today daily open	0.6865

Trends
Daily SMA20	0.6906
Daily SMA50	0.6664
Daily SMA100	0.6504
Daily SMA200	0.6668

Levels
Previous Daily High	0.6911
Previous Daily Low	0.6841
Previous Weekly High	0.6975
Previous Weekly Low	0.6811
Previous Monthly High	0.6683
Previous Monthly Low	0.6372
Daily Fibonacci 38.2%	0.6884
Daily Fibonacci 61.8%	0.6867
Daily Pivot Point S1	0.6834
Daily Pivot Point S2	0.6802
Daily Pivot Point S3	0.6764
Daily Pivot Point R1	0.6904
Daily Pivot Point R2	0.6942
Daily Pivot Point R3	0.6974

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.

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