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AUD/USD Wide Trading Range Remains Intact - Quick Update!

EagleFX

The AUD/USD pair was closed at 0.69295 after placing a high of 0.69744 and a low of 0.68576. Overall the movement of AUD/USD pair remained bullish throughout the day. The AUD/USD pair flashed green and followed its Monday move and posted gains on Tuesday on the back of upbeat Australian economic data and broad-based US dollar weakness.

At 4:00 GMT, the Flash manufacturing PMI from Australia for June came in as 49.8 compared to May's 44.0 and supported Aussie. The Flash Services PMI for June came in as 53.2 and indicated expansion in the services sector of Australia in June and helped Aussie.

Better than expected PMI from Australia helped Aussie to gain traction and support the upward trend of the AUDUSD pair on Tuesday.
On the other hand, at 18:45 GMT, the Flash Manufacturing PMI from the United States for June fell short of expectations and came in as 49.6 against the forecasted 50.0 and weighed on the US dollar. The Flash Services PMI came in line with the hopes of 46.7. Poor than expected PMI data from the US weighed on the US dollar and added further support to AUD/USD pair on Tuesday.

Greenback remained on the back foot after the comments from US Treasury Secretary Steve Mnuchin, who said that the Congress would announce more stimulus in July. It depicted weaker US economic conditions, and the US dollar became weak onboard against other currencies. The US Dollar Index was down 0.5% near 96.56 and supported the surge of AUD/USD on Tuesday.

Furthermore, in the earlier trading sessions, AUD/USD pair suffered losses on the back of the latest comments made by White House advisor Peter Navarro that trade deal was over between US & China. However, he clarified his statement by saying afterward that the market took his statement in the wrong direction. The clarification of Navarro was also backed by US President Donald Trump, who tweeted on Tuesday that trade deal was still intact. Aussie being the largest trading partner of China gained traction after the tweet of US President, and hence, pair AUD/USD ended its day with a bullish candle.

Daily technical Levels
Support Resistance
0.6867 0.6984
0.6804 0.7034
0.67490.7107
Pivot point: 0.6921

The AUD/USD is consolidating in a wide trading range of 0.6975 - 0.6804, and it's been showing choppy sessions in between this range. It seems like the lack of direct fundamentals are keeping Aussie on hold. To see more buying Aussie should break above 0.6975 level, which can lead the AUD/USD prices further higher until 0.7065 level. On the lower side, a bearish crossover of 50 EMA can lead Aussie towards 0.6800. Let's consider staying bearish below 0.6975 level today. Good luck!

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