FX.co ★ AUD/USD: more gains in cards

The AUD/USD pair rallied in the last two hours and now it has registered a new high of 0.6465. It's trading at 0.6462 and it seems determined to extend its growth if the Dollar Index drops deeper.

Fundamentally, the Australian Flash Manufacturing PMI and Flash Services PMI came in worse compared to the previous reporting period indicating further contraction. On the other hand, the US Flash Services PMI announced a slowdown in expansion after dropping to 51.0 points, while Flash Manufacturing PMI came in at 47.0 points, far below 48.9 points expected. In the short term, the USD could try to recover as the US New Home Sales came in better than expected.

AUD/USD Strong Rally!

As you can see on the h1 chart, the AUD/USD pair passed above the downtrend line signaling that the downside movement ended.

It has moved somehow sideways trying to accumulate more bullish energy before jumping higher. As long as it stays above the weekly pivot point of 0.6430 and above the uptrend line, the pair could develop a larger swing higher.

AUD/USD Outlook!

Now, it has jumped and closed above 0.6450 signaling further growth ahead. Taking out this resistance confirmed a strong buying pressure. A bullish closure above 0.6465 today's high is seen as a bullish signal.