AUDUSD rises 0.56% to 0.67485; stronger U.S. manufacturing index expected to influence future movements

AUDUSD Analysis

Performance after Monday
Period	Pct	Chg	Momentum
Monday	0.56%	37.3 Pips
Week to-date	0.53%	35.6 Pips
September	-0.7%	-47.4 Pips

Upcoming key events (London Time)

Tue 01:30 PM USD Monthly Retail Trade (1-mth)
Wed 07:00 PM USD Fed Interest Rate Decision (Federal Funds Rate)
Wed 07:00 PM USD Interest Rate Projections

What happened lately

The U.S. New York Empire State Manufacturing Index for September increased significantly to 11.5 points, rising from -4.7 points in August. This improvement indicates a substantial gain in manufacturing activity within the state of New York, suggesting stronger economic performance and potential growth in the manufacturing sector. This data, reported by the New York Fed, reflects improved business conditions and might boost confidence in the broader economic outlook of the United States.

The news of the improving manufacturing index in the U.S. is likely to influence the AUDUSD currency pair. The positive economic data from the U.S. can increase demand for the U.S. dollar (USD), as investors may expect a stronger economic environment and potential interest rate hikes by the Federal Reserve. As a result, despite the 0.56% rise in AUDUSD to 0.67485 observed on Monday, the strengthening U.S. dollar could potentially exert downward pressure on the pair in the upcoming sessions. Furthermore, significant upcoming events such as the Monthly Retail Trade data and the Federal Reserve’s Interest Rate Decision and Projections are high-impact news that could further strengthen the U.S. dollar, potentially leading to a depreciation of the Australian dollar (AUD) against the USD.

Latest from X (Twitter)

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What can we expect from AUDUSD today?

AUDUSD on Monday rose 0.56% to 0.67485. Price is above 9-Day EMA while Stochastic is rising.

Updated daily direction for AUDUSD looks bullish as the pair ended higher after Monday trading session.

Looking ahead for the day, immediate upside resistance level is R1 at 0.67666 with break above could target R2 at 0.67846 or figure level area. While towards the downside, we are looking at daily low of 0.67053 as an important support. Break below this level could weaken the current bullish momentum. A break above 0.67540 may suggest continuation after recent positive movement.

For the week to-date, take note that AUDUSD is bullish as the pair continued to trade higher and is up by 0.53% over the past few days.

Key levels to watch out:

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