One of the key factors influencing the near-term trends of the AUD/USD is the private sector PMIs from China and Australia. These data points provide crucial insights into the health of the manufacturing sectors in these countries, which in turn can impact the value of the Australian dollar against the US dollar.
Another important factor to consider is the US economic calendar and GDP numbers. Any hotter-than-expected data from the US could potentially lead to a shift in investor sentiment regarding a September rate cut, favoring the US dollar over the Australian dollar. This could result in a downward pressure on the AUD/USD pair.
The AUD/USD pair is currently trading comfortably above the 50-day and 200-day EMAs, signaling a bullish outlook. A breakout from the $0.66500 handle could indicate a potential move towards the $0.67003 resistance level, with further upside potential towards the $0.67500 handle. However, a drop below the $0.66 handle could give the bears an opportunity to test the support levels at $0.65760, potentially leading to increased selling pressure.
Impact of Manufacturing PMIs
The manufacturing sector PMIs from Australia, China, and the US also play a significant role in determining the direction of the AUD/USD pair. Any unexpected fluctuations in these data points could lead to increased volatility and potentially alter the prevailing trend of the currency pair.
With a 14-period Daily RSI reading of 56.25, the AUD/USD pair may have room to move towards the $0.67500 handle before potentially entering overbought territory. However, it is important to keep a close eye on the technical indicators, such as the 50-day and 200-day EMAs, to gauge the strength of the current trend and potential reversal points.
The AUD/USD pair is currently influenced by a variety of economic data points and technical factors. Traders and investors should closely monitor the upcoming releases and be prepared to adjust their positions accordingly based on the evolving market conditions.