AUDUSD Analysis: AUDUSD rising despite contracting business activities in Australia

April 28, 2020

By IFCMarkets

AUDUSD rising despite contracting business activities in Australia

Private sector activity in Australia continued to contract in April: the Commonwealth Bank flash Composite PMI dropped to 22.4 in April, after declining to 39.4 in March. Readings above 50.0 signal an improvement in business activity, while readings below 50.0 indicate contraction. This is bearish for AUDUSD but the technical setup is bullish for the pair.

IndicatorVALUESignal
RSINeutral
MACDBuy
Donchian ChannelBuy
MA(200)Buy
FractalsNeutral
Parabolic SARBuy

 

Summary of technical analysis

OrderBuy
Buy stopAbove 0.6506
Stop lossBelow 0.6433

Market Analysis provided by IFCMarkets