- Australian Dollar extends losses against stronger USD as US data beats expectations.
- US manufacturing sector expands with price subindex at recent highs.
- AUD/USD is testing the 0.6480 support, with the key 0.6440 zone in focus.
The Australian dollar resumed its bearish trend on Monday, weighed down by the strength of the US dollar following better-than-expected US manufacturing data.
The US ISM Manufacturing PMI improved to 50.03 in March, returning to expansion levels after more than a year, and beating market expectations for a milder improvement to 48.2. Beyond that, the prices paid subindex has accelerated at its fastest pace in nearly two years, posing upward pressures for inflation.
AUD/USD Technical Analysis
The Australian Dollar is under increasing bearish pressure after breaking above the base of a triangle pattern at 0.6530. This level slowed recovery attempts on Thursday and Friday, and the bears took control on Monday.
The pair is now testing the support at 0.6480, which closes the path towards the big target at 0.6440. To the upside, the aforementioned inverse trend line, at 0.6530 is the immediate resistance before 0.6555.
AUD/USD 4-hour chart
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.
