The AUDUSD pair failed to capitalize on its intraday recovery move and remains well within the striking distance of seven-month lows set earlier this Thursday.
1 August 2019, OctaFX – The Australian dollar stabilized in the Asian session. This is after data from AIG showed that the manufacturing index had risen to 51.3 in July.
This was a higher gain than the previous 49.4. In July, the manufacturing PMI rose to 51.6, which was better than the consensus estimate of 51.4. In the second quarter, the export price index rose by 3.8%, which was better than the consensus estimate of 2.8%. Meanwhile, data in China showed some strength. The manufacturing PMI data from Caixin rose to 49.9 from the previous 49.4.
AUDUSD technical analysis
The AUDUSD pair declined sharply after the Fed delivered its interest rates decision. The pair reached a low of 0.6827. In the Asian session, positive data from China and Australia saw the pair move slightly higher.
The pair is below the 25-day and 50-day moving averages while the RSI moved to below the oversold level. The pair could remain in this channel of indecision as a hawkish Fed meets a stronger Australian economy.
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