Aussie Holds Bullish Bias As Positive PMIs Clash With Broad Selling

AUD Weakness Across The Board As Traders Faded Positive PMIs

The Aussie is getting clipped across the majors. AUD/USD is down 0.38%, AUD/EUR down 0.13%, AUD/GBP down 0.20%, and AUD/JPY down 0.19%. Broad weakness. The positive Australian PMI headlines which should have helped the Aussie, did nothing.

AUD Heat Map Shows Broad Aussie Weakness, With AUD/USD Down 0.38%, and AUD Also Lower Against EUR, GBP, And JPY

Australia Services PMI Rebounds, Giving AUD/USD Bulls a Better Macro Pulse

The Services PMI Flash jumped to 50.7 from below 50. So the Australian economy isn’t rolling over as badly as feared. This is mildly bullish for AUD/USD as stronger services activity can support domestic growth expectations and reduce pressure on the RBA to turn dovish too quickly.

Australia’s S&P Global Services PMI Flash Rose to 50.7, Moving Back Above the 50 Expansion Line After a Weaker Prior Reading

Australia Manufacturing PMI Edges Higher, Giving AUD/USD A Small Lift

The S&P Global Manufacturing PMI Flash reading rose to 51.3 from 50.2, keeping the sector above the 50 expansion line. This is mildly supportive of the Aussie, giving bulls a positive datapoint to lean on.

Australia’s S&P Global Manufacturing PMI rose to 51.3, Keeping The Sector In Expansion Territory

AUD/JPY Renko Holds Firms as Aussie Demand Defend 113.30

AUD/JPY is bouncing around its 50-SMA. It really appears that there is consolidation going on before it starts to make a move higher. Momentum is leading the price as the RSI has crossed above 50 with the Z-Score SMA trending higher. The Supertrend needs to flip back positive and confirm the upmove higher towards 114.730 resistance.

AUD/JPY 0.225 Renko Chart Shows Price Consolidating Near 113.4, Above the 50-SMA but Below Recent Highs

AUD/USD Renko Stalls Below 0.7180 as Bulls Fight for Momentum

While the Supertrend flipped positive and the RSI is heading towards 50 with the Z-Score SMA trending higher, the AUD/USD is still below its 50-SMA on the Renko chart. To get back into full upward trend gear it needs to get back up above that MA. Once the Aussie pushes through that threshold it can seek to retest the 0.72775 resistance in the short term.

AUD/USD 0.0015 Renko Chart Shows Price Rebounding Toward the 50-SMA, But Momentum Remains Mixed Below 0.7180

The Verdict

Current Trend Direction: Bullish

Bias: Positive

Support Levels: 0.6833,0.71015,0.70720

Resistance Levels: 0.72715, 0.74070

Medium Term Path: AUD/USD appears to be consolidating before making another move higher. The 0.7015 level is acting as medium term support for the FX pair. Hopefully the momentum can pick back up to carry the Aussie back above its 50-SMA on the Renko so that it can continue its upward trajectory.