The AUD/USD Resumes its Battle with 0.7600
The overnight session saw more Greenback strength and the rally continues to put pressure on the AUD/USD.
US 10-year bond yields remain high and we are clearly seeing a move into the perceived safety of the USD. This is causing mayhem for the likes of the AUD/USD and it is also weighing heavily on the commodities sector, which Australia is a large exporter.
This all means that the Aussie is under pressure and until the Greenback rally eases, we are unlikely to see much upside at all.
In an hour or so we will get some economic data that should impact the AUD/USD, in the form of Chinese Manufacturing PMI. This number has been on the rise in recent times and the expectation is for another nudge higher to 51.0.
The AUD/USD is green on the session and for the most part, has been holding up well given the USD strength as mentioned.
We are seeing the 0.7600 level being tested for another day and so far price is holding. In fact, if price holds up and we see a double bottom of sorts, that does bode quite well for a rebound.
0.7575, is likely the line in the sand here and if we could see a close under both those levels, then I think there is going to be too much dragging the Aussie down.
To the upside, I will be watching the 0.7650, which is the most recent high. A break above that level is bullish.
On a technical level, things are quite clear now, so it is just a matter of seeing which level gives first and going with the momentum.
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