AUD/USD has been declining for about a month, breaking below 0.65, but yesterday we saw a bullish reversal which sent this pair around 60 pips higher. The soft ISM services and prices from the US was one of the reasons, while Jerome Powell’s speech was another one. Today, the services PMI from Australia showed the opposite of what we saw from the US, as they expanded in March, together with the composite and prices paid, giving the Australian dollar another reason to  move higher.

AUD/USD Chart H4 – The 50 SMA Has Been Broken

The Aussie was on a bearish trend for about a month, losing nearly two cents and piercing below 0.65 a coupleof times. But both times bnuyers came right back, pushing the price above this level, indicating that there is strong buyoingpressure down there. This forex pair was making lower highs since early March, with moving averages acting as resistance, particularly the 50 SM (yellow) on the H4 chart.

But, after the climb yesterday following the negative US services report, this moving average was broken. Early this morning we had the services PMI report from Australia, which was quite positive, keeping the buying pressure on during the Asian session for AUD/USD .

S&P Global / Judo Bank Australian PMI, Services and Composite for March 2024

Overall, the report contains mostly positive news, with strong output and business activity in the services sector. However, the persistent price pressures indicate that the Reserve Bank of Australia is unlikely to cut rates anytime soon. Market consensus for an initial rate cut is currently around September, reflecting expectations of continued economic strength and inflationary pressures.

AUD/USD Live Chart