AUD/USD Price Analysis: Needs Stability Above 0.6500 for Decisive Breakout

• AUD/USD is struggling to stabilize above 0.6500 for a further rise ahead of the US NFP.
• The Australian dollar, as a proxy for the Chinese economy, could come under pressure if Chinese factory activities remain below 50.0.
• The AUD/USD pair has been consolidating in a wider range of 0.6336-0.6525 over the past 15 trading sessions.

The AUD/USD pair is consolidating in a tight range near the psychological resistance of 0.6500 in the New York session. The pair remains cautious as investors await the US Non-Farm Payrolls (NFP) for August due to be released on Friday. In addition to the US NFP, the ISM Manufacturing PMI will be closely watched.

Following the US Automatic Data Processing (ADP) Employment report, investors expect the labor market to be losing strength. Companies are operating with the current workforce due to the deteriorating demand environment.

Meanwhile, the Australian dollar will dance to the tune of Caixin manufacturing PMI data. The Australian dollar, as a proxy for the Chinese economy, could come under pressure if Chinese factory activities remain below the 50.0 threshold.

The AUD/USD pair has been consolidating in a wider range of 0.6336-0.6525 for the past 15 trading sessions. The pair is aiming to stabilize above the 200 EMA, which is trading around 0.6480.

Momentum would turn bullish after the RSI (14) moves into the 60.00-80.00 range.

A recovery move above the Aug 15 high around 0.6522 will propel the pair towards the Aug 9 high at 0.6571. The break of the latter will propel the Asset towards the 10th August high at 0.6616.

In an alternative scenario, a further fall would occur if the Australian asset fell below the lows around 0.6360 on August 17. This would expose the asset to support at the round level of 0.6300 followed by the 03 Nov 2022 low at 0.6272.

AUD/USD 2-hour chart