- AUD/USD is recovering amid widespread dollar weakness on Monday.
- This week the PMI and CPI inflation indices will be published.
- The strength of the AUD remains largely dependent on the weakness of the US Dollar Index in the broader markets.
The Australian Dollar (AUD) bounced from 0.6300 against the US Dollar (USD) in Monday trading and reached 0.6350. AUD/USD started the week near 0.6314, and fell as low as 0.6288 before getting bids on the weaker Dollar in the market.
Australian Purchasing Managers’ Index (PMI) figures will be released late on Monday at 22:00 GMT as Pacific markets head into Tuesday’s trading window, but Australian traders will keep an eye on put in the publication of the Australian Consumer Price Index (CPI) on Wednesday.
On the dollar side, US PMIs will be released on Tuesday, and investors generally expect a slight decline in manufacturing and services components; It is estimated that the US manufacturing PMI will fall from 49.8, and that the services component will also fall from 50.1 to 49.9.
Australia’s annualized monthly Consumer Price Index (CPI) was last at 5.2%, and markets are forecasting a pick-up in CPI inflation on Wednesday, with the index rising 5.4% for the year to September .
AUD/USD Technical Outlook
Despite Monday’s bounce, the Australian dollar remains woefully bearish against the US dollar in the near term as the pair continues to trade below last week’s highs and remains near eleven-month lows.
Technical resistance continues to pressure prices from a descending 50-day SMA that currently sits in the 0.6400 area, with the October lows below 0.6300 the only significant support for current price action.
AUD/USD Daily Chart
AUD/USD technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
