“¢ Investors looked past today’s disappointing Aussie macro data.
“¢ Bulls show resilience near weekly lows, despite a modest USD rebound.
“¢ US data to provide some impetus ahead of Friday’s Chinese PMI prints.
The AUD/USD pair has managed to recover a major part of its early decline to weekly lows, albeit seemed struggling to build on the momentum back above the 0.7300 handle.
With investors looking past today’s disappointing Aussie data – private business CapEx and new building approvals, the pair once again managed to find a decent support near the 0.7275 region.
The uptick seemed largely unaffected by a modest pickup in the US Dollar demand and a weaker tone around copper prices, which tends to undermine demand for the commodity-linked Australian Dollar.
The rebound, so far, seemed lacking any obvious fundamental catalyst and seems more likely to meet with some fresh supply as market participants now look forward to the US macroeconomic releases for some fresh impetus.
Today’s US economic docket features the release of core PCE price index – the Fed’s preferred inflation measure, personal income/spending data and the usual initial jobless claims and should assist traders to grab some short-term trading opportunities.
The key focus, however, would be on the official Chinese PMI prints (manufacturing and services), which against the backdrop of concerns over the US-China trade tensions could have a lasting effect on the China-proxy Australian Dollar.
Technical levels to watch
Momentum beyond the 0.7300 handle is likely to confront immediate resistance near the 0.7315-20 region, above which the pair is likely to aim back towards testing the 0.7350-60 supply zone.
On the flip side, the 0.7275 level might continue to protect the immediate downside, which if broken might turn the pair vulnerable to accelerate the slide towards 0.7240-35 support area en-route the 0.7200 handle.
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