AUD/USD struggles below 0.7350 on softer China and Aussie data


  • AUD/USD remains subdued on the first trading day of the week.
  • The Australian dollar losses against the greenback on mixed economic data.
  • US Dollar rebounds from the lower levels amid risk-aversion.

AUD/USD treads water in the Asian session on Monday morning. The pair opened lower, however,  it recovered swiftly to touch the intraday high of 0.7350 but failed to preserve the momentum.

At the time of writing, AUD/USD is trading at 0.7344, down 0.01% for the day.

The US Dollar Index (DXY), which tracks the performance of the greenback against its six major rivals recovers from its earlier lower levels to trade near the 92.00 mark.

The upbeat US economic data uplifts the demand for the greenback. Both Personal Income and Spending for June came higher in June and the Core Personal Consumption Expenditure (PCE) index came below the market consensus of 0.6% at 0.4%. 

The lower PCE reading suggested that it could be a sign transitory price pressure could be easing gradually.

The sentiments were also buoyed after the hope of a  more fiscal stimulus in the US ahead as senators were in the process to formalize, a sweeping $1 trillion infrastructure plan this week.

On the other hand, Aussie loses grounds as investors assessed the impact of New South Wales record levels of COVID-19 cases. The largest city of Australia, Sydney could reintroduce restrictions as well amid surging cases.

The IHS Markit Australia Manufacturing Purchase Managers Index ( PMI) came at 56.9 in July as compared to 58.6 in June. The reading indicated the slowest growth in factory activity in four months. The Ai Group Australian Performance of Manufacturing Index fell to 60.8 in July from 63.2 in the previous month.

The dismal Chinese Caixin Manufacturing PMI fell to 50.3 in July, below the market expectations of 51.0. The reading was the lowest since April 2020 due to the outbreak of the Delta variant in Nanjing, higher commodity prices, and rough weather conditions. The Aussie was negatively affected by the reading, benign the largest Chinese trade partner.

As for now, traders await the US ISM Manufacturing PMI to trade fresh trading impetus.

AUD/USD additional levels

AUD/USD

Overview
Today last price 0.7344
Today Daily Change -0.0001
Today Daily Change % -0.01
Today daily open 0.7345
 
Trends
Daily SMA20 0.7415
Daily SMA50 0.7556
Daily SMA100 0.7635
Daily SMA200 0.7599
 
Levels
Previous Daily High 0.7405
Previous Daily Low 0.733
Previous Weekly High 0.7415
Previous Weekly Low 0.7317
Previous Monthly High 0.7599
Previous Monthly Low 0.7288
Daily Fibonacci 38.2% 0.7359
Daily Fibonacci 61.8% 0.7376
Daily Pivot Point S1 0.7315
Daily Pivot Point S2 0.7285
Daily Pivot Point S3 0.724
Daily Pivot Point R1 0.739
Daily Pivot Point R2 0.7435
Daily Pivot Point R3 0.7465

 


 

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.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD remains pressured after US data misses estimates

EUR/USD is trading closer to 1.1750, paring its recovery from earlier in the day as the safe-haven dollar is bid. US Consumer Sentiment missed estimates with 72 points in September. The financial woes of China's Evergrande are weighing on sentiment.

EUR/USD News

GBP/USD trades under 1.38 amid on UK data, dollar strength

GBP/USD is on the back foot, trading under 1.38 after UK Retail Sales figures disappointed with -0.9% in August, worse than expected. Brexit uncertainty and dollar demand weighed on the pair earlier. 

GBP/USD News

XAU/USD surrenders intraday gains, drops closer to $1,750 level

Gold struggled to preserve its intraday gains and dropped to the lower end of the daily trading range during the early North American session. 

Gold News

Experts say Ripple will win SEC lawsuit, which might propel XRP to new all-time highs

The latest development in the ongoing SEC vs. Ripple lawsuit is that documents are classified as privileged and blocked for public viewing. Though institutional investors are yet to take big bets on the altcoin in 2021, retail investors are actively trading in XRP.

Read more

US Michigan Consumer Sentiment Preview: Markets will have to look hard for positive signs

Consumer outlook expected to rebound to 72.2 in September. August’s 70.2 was the lowest since December 2011. Inflation and Delta variant wearing on US optimism. Markets face negative dollar risk from fading consumer optimism.

Read more

Forex MAJORS

Cryptocurrencies

Signatures