The Australian Dollar (AUD) inched higher against the US Dollar (USD) on Friday, increasing the price of the AUDUSD to more than 0.7100 ahead of the US marketing manufacturing PMI news. The technical bias remains bullish because the price marked a higher high in the recent upside move.
As of this writing, the pair is being traded around 0.7190. Resistance may be seen near 0.7275, the key horizontal resistance ahead of 0.7288, the upper trendline arm and then 0.7300, the psychological number that may resist the price from moving higher as shown in the graph below.
On the downside, support can be noted around 0.7059, the key horizontal level that may support the price in a consolidation phase. Another support might hit the price near 0.7000, the psychological number and then 0.6893, the 23.6% Fib level, may prevent the price from falling further as demonstrated in the chart above.
US Market Manufacturing PMI
The US Market Economic is set to release the data for the market manufacturing PMI on Friday somewhere in the mid of the US trading session. According to the forecast, the US market manufacturing registered a reading of 51.9 in July as compared to 50.9 in the month before. Since the manufacturing PMI constitutes a large part of the country’s overall GDP, hence it is considered one of the key economic indicators. Generally speaking, a reading above 50 is favourable for the US Dollar but suggests a bearish market trend for the AUDUSD and vice versa.
Considering the overall price behaviour of the pair during recent days, buying the AUDUSD around current levels may be a good idea.