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3 Aug 2015
AUD/USD bounces off lows after ISM manufacturing index
FXStreet (Córdoba) - AUD/USD bounced from lows and trimmed intraday losses as the greenback receded across the board following US ISM leaked numbers, which came in below expectations.
US ISM manufacturing PMI disappoints
The Institute for Supply Management’s manufacturing PMI fell to 52.7 from a June reading of 53.5 and below the consensus estimate of 53.5. Meanwhile, the Markit manufacturing PMI for July came in at 53.8, matching expectations.
The US dollar weakened slightly with AUD/USD recovering from a low of 0.7762 to the 0.7290 area before finding resistance. At time of writing, the pair is trading at 0.7280, recording a 0.34% loss on the day.
AUD/USD vulnerable ahead of RBA decision
AUD/USD still trades close to its 6-year low scored on Friday at 0.7234, with the Aussie vulnerable amid low commodity prices and weak Chinese data. The Reserve Bank of Australia will decide on monetary policy on Tuesday, but the bank is expected to maintain key rate unchanged at 2.0%.
AUD/USD levels to watch
As for technical levels, immediate supports seen at 0.7234 (6-year low Jul 31), 0.7200 (psychological level) and not much until the 0.7100/05 area (psychological level/Apr 24 2009 low). On the other hand, resistances could be found at 0.7317/22 (10-day SMA/Jul 30, Aug 3 highs) and 0.7365 (Jul 31 high).
US ISM manufacturing PMI disappoints
The Institute for Supply Management’s manufacturing PMI fell to 52.7 from a June reading of 53.5 and below the consensus estimate of 53.5. Meanwhile, the Markit manufacturing PMI for July came in at 53.8, matching expectations.
The US dollar weakened slightly with AUD/USD recovering from a low of 0.7762 to the 0.7290 area before finding resistance. At time of writing, the pair is trading at 0.7280, recording a 0.34% loss on the day.
AUD/USD vulnerable ahead of RBA decision
AUD/USD still trades close to its 6-year low scored on Friday at 0.7234, with the Aussie vulnerable amid low commodity prices and weak Chinese data. The Reserve Bank of Australia will decide on monetary policy on Tuesday, but the bank is expected to maintain key rate unchanged at 2.0%.
AUD/USD levels to watch
As for technical levels, immediate supports seen at 0.7234 (6-year low Jul 31), 0.7200 (psychological level) and not much until the 0.7100/05 area (psychological level/Apr 24 2009 low). On the other hand, resistances could be found at 0.7317/22 (10-day SMA/Jul 30, Aug 3 highs) and 0.7365 (Jul 31 high).