The Australian dollar overcame a key resistance on Monday, climbing past the 0.7850 US handle after several failed attempts. The pair was under pressure in Tuesday’s morning session, but continued to trade above that key level.
The AUDUSD advanced to a daily high of 0.7900 on Monday. By Tuesday morning, it had pared those gains to trade at 0.7862. The pair’s next resistance target is 79.34. On the downside, support is found at 0.7796.
Australia had no economic data to report on Tuesday, as the markets shifted their attention to China manufacturing PMI. China’s manufacturing industry contracted unexpectedly in March, casting doubts about the world’s second-largest economy. The HSBC China manufacturing PMI fell to 49.2 in March from 50.7 in February. A reading above the 50-mark signifies expansion in manufacturing output.
The US government will release CPI consumer inflation on Wednesday, which could significantly impact US dollar pairs.
Separately, the Commerce Department will report on new home sales for February.
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