After the terrible drop of four trading days, today Australian Dollar (AUD) inched higher against the US dollar (USD). Although, this raise is not sufficient to overcome the Australian Dollar’s worth.
Whereas, the recent increase of AUDUSD builds a new hope in the path of the AUDUSD terrible journey, and it might be happening because of the upcoming Commonwealth Bank Manufacturing.
Commonwealth Bank of Australia and the Markit Economics are all set to schedule the data of commonwealth bank Manufacturing on June 23, 2021.
According to economists, Commonwealth Bank Manufacturing PMI registered a reading of 60.4 in June while bearing no change compared to the month before reading.
The Manufacturing PMI is an indicator of business conditions and the general economic condition in Australia, as the manufacturing sector accounts for a large portion of total GDP. A result of more than 50 signs is optimistic for the Australian dollar, strengthening the AUDUSD pair.
The AUDUSD pair faces a lot of resistance ahead of it, which may stifle future growth.
Moreover, today the Australian Bureau of Statistics released the Retail Sales data, which as per the FXStreet.com report, registered the 0.1% reading in May compared to the month before data of 1.1%.
Conclusion
The technical bias might remain bearish for a while because the upside of price movement of AUDUSD shows the higher low wave.