AUD/USD struggles to find direction, continues to trade around 0.6850

Lack of macroeconomic data releases causes markets to stay calm on Wednesday.
US Dollar Index looks to end the day flat near 97.50.
Coming up: Manufacturing and Services PMI data from Australia.

Eren Sengezer FXStreet

After posting small daily losses on Tuesday, the AUD/USD pair struggled to make a decisive move in either direction on Wednesday and looks to close the day near the 0.6850 handle.

The lack of major developments surrounding the United States (US)-China trade conflict and significant macroeconomic data releases on Wednesday is forcing major currency pairs to stay in a consolidation phase.

Eyes on PMI reports

In the early trading hours of the Asian session on Thursday, the Commonwealth Bank of Australia and Markit Economics will be publishing the preliminary Manufacturing and Services Purchasing Managers' Index (PMI) reports. Markets expect the Manufacturing PMI to fall to 49 in October from 50.3 in September to reveal contraction in the sector's economic activity.

Lower-than-expected PMI figures could put the AUD under selling pressure as it's likely to be seen as a factor that would force the Reserve Bank of Australia (RBA) to preserve its dovish policy outlook.

On the other hand, the US Dollar Index, which registered modest recovery gains on Tuesday, looks to finish the day virtually unchanged on Wednesday. Markit Manufacturing and Services PMI data, durable good orders, and new home sales data from the US on Thursday could cause volatility to heighten in the second half of the day.

Technical levels to watch for

AUD/USD

Overview
Today last price	0.685
Today Daily Change	-0.0006
Today Daily Change %	-0.09
Today daily open	0.6856

Trends
Daily SMA20	0.6768
Daily SMA50	0.6783
Daily SMA100	0.6857
Daily SMA200	0.6967

Levels
Previous Daily High	0.6884
Previous Daily Low	0.6849
Previous Weekly High	0.6858
Previous Weekly Low	0.672
Previous Monthly High	0.6895
Previous Monthly Low	0.6687
Daily Fibonacci 38.2%	0.6863
Daily Fibonacci 61.8%	0.6871
Daily Pivot Point S1	0.6842
Daily Pivot Point S2	0.6829
Daily Pivot Point S3	0.6808
Daily Pivot Point R1	0.6877
Daily Pivot Point R2	0.6898
Daily Pivot Point R3	0.6911

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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