Australian Manufacturing PMI is facing a drop

Australian flag
Australia is still facing challenging times as April Commonwealth Bank Manufacturing PMI was released at 44.1 this morning, vs 45.6 expected and 49.7 in March. On its side, the Ai Group Manufacturing PMI Index faced an even worse fall as it was reported at 35.8, vs 46.0 expected and 53.7 the previous month. AUD/USD is facing a consolidation but remains quite resilient.

From a technical point of view, despite the current pull back, AUD/USD remains supported by a rising trend line. It also stands above its 50-day moving average (in blue) as the daily RSI stands within its buying area between 50 and 70. Readers may therefore consider the potential for a new advance above horizontal support at 0.6270. The nearest resistance would be set at previous overlap at 0.6685 and a second one would be set at set at 0.6850 in extension.

Market chart demonstrating Australian Manufacturing Pmi Is Facing A Drop. Published in May 2020 by FOREX.com
Source: TradingView, GAIN Capital

 
 
Related tags: Forex Forex Australia

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