AUD/USD: buying dips but lack of follow through – FXStreet

By FXStreet Valeria Bednarik, chief analyst at FXStreet rounded up the action surrounding AUD/USD to close down the month of March’s business.

Key Quotes:

“The AUD/USD pair ended the week at 0.7680, its highest daily close since June 2015, underpinned by Australian March manufacturing PMI that surged to the highest since 2004 to 58.1, in line with the strong local growth, anticipated by other macroeconomic reports.

Also, supporting the Aussie was an uptick in Chinese data, as the official manufacturing PMI printed 50.2 in March from 49 in February, beating expectations of 49.4, while the non-manufacturing PMI rose to 53.8 from 52.7 in the previous month.

Market buying dips in AUD/USD

“The daily chart shows that a decline down to 0.7598 was quickly reversed, indicating that market is still eager to buy the dips in the pair. In the same chart, the price remains well above a firmly bullish 20 SMA, although the technical indicators have lost upward strength near overbought levels, and the Momentum indicator particularly, has turned lower.”
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Source:: FX Street