AUD/USD Price Analysis: Needs stability above 0.6500 for a decisive breakout
- AUD/USD strives for stability above 0.6500 for a fresh upside ahead of US NFP.
- The Australian Dollar as a proxy to Chinese economy might come under pressure if China’s factory activities remain below 50.0.
- AUD/USD has been consolidating in a wider range of 0.6336-0.6525 for the past 15 trading sessions.
The AUD/USD pair consolidates in a narrow range near the psychological resistance of 0.6500 in the New York session. The Aussie asset remains topsy-turvy as investors await the US Nonfarm Payrolls (NFP) for August, which will be published on Friday. In addition to the US NFP, ISM Manufacturing PMI will be keenly watched.
After US Automatic Data Processing (ADP) Employment report, investors hope that the labor market is losing resilience. Firms are operating with the current labor force due to the deteriorating demand environment.
Meanwhile, the Australian Dollar will dance to the tunes of the Caixin Manufacturing PMI data. The Australian Dollar as a proxy to the Chinese economy might come under pressure if China’s factory activities remain below the 50.0 threshold.
AUD/USD has been consolidating in a wider range of 0.6336-0.6525 for the past 15 trading sessions. The Aussie asset is aiming to stabilize above the 200-period Exponential Moving Average (EMA), which trades around 0.6480.
Momentum would turn bullish after the Relative Strength Index (RSI) (14) shifts into the 60.00-80.00 range.
A recovery move above August 15 high around 0.6522 will drive the asset to August 9 high at 0.6571. Breach of the latter will drive the asset towards August 10 high at 0.6616.
In an alternate scenario, a fresh downside would appear if the Aussie asset dropped below August 17 low around 0.6360. This would expose the asset to the round-level support of 0.6300 followed by 03 November 2022 low at 0.6272.
AUD/USD two-hour chart
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Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
