The AUD/USD pair has been under bullish pressure since the 27th of June 2016, with the buyers lifting the price from as low as 0.7322 to as high as 0.7492.
On Thursday, the pair bell below 0.7370 on talks of PBOC allowing the yuan to devalue further. Nevertheless, the cross recovered immediately and pulled back above 0.7459, although further recovery was capped as the greenback found support from upbeat Chicago PMI print.
Today, the major has risen above 0.7472 and has now moved higher to 0.7492 ahead of the U.S. ISM manufacturing PMI report due later in the day. Despite the downbeat manufacturing data from China - Australia’s biggest trading partner - the pair managed to build on yesterday’s momentum, while being underpinned by a weaker dollar that is lending support to the commodity-linked currencies.
From a technical perspective, in the event where the price breaks above 0.7520, the pair could extend its gains up to 0.7585 and 0.7605 in extension.
On the flip side, in the scenario where the price breaks below 0.7430, the pair could find support at 0.7388 and 0.7322 respectively.
Please note: The content in this daily technical analysis article should not be taken as investment advice. It comprises our personal view.