AUDUSD At Four-Month Highs

AUDUSD Daily Chart

AUDUSD continues the rally from the March lows, making fresh four-month highs boosted by better macroeconomic data. The Australia Commonwealth Bank Manufacturing PMI came in at 44 above the forecasts of 42.8 in May. The AiG Performance of Manufacturing Index rose to 41.6 from the previous 35.8. Australia Inflation fell from previous -0.1% to -1.2% in May, while the yearly Inflation dropped to 0.1% in May from the previous 1.2%. 

From China, the manufacturing Purchasing Manager’s Index (PMI) came in at 50.6. That was below the 50.8 reading in April and below the expectations of 51.0. The Caixin/Markit manufacturing PMI for May came in at 50.7, beating the expectations of 49.6.  

On the technical side, the pair turns bullish after today managed to break above the 200-day moving average. On the upside, first resistance stands at 0.6757, the daily top. The next hurdle will be met at 0.6819, the high from January 27. In the case of a move higher, the next resistance stands at 0.6910, the high from January 17. 

On the other hand, initial support stands at 0.6650 and 0.6648, the 200-day moving average and daily low. If the pair breaks below, then the next support will be met at 0.6609, the low from Friday’s trading session. The next support zone stands at 0.6569, the low from May 12.  

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