This morning, the Australian dollar (AUD) slumped against the US dollar (USD), responding completely contrary to the pair’s move of the past few days. Tthe price fell after a big piece of economic news related to the upcoming Common Wealth Bank Manufacturing. As for the technical bias, it might remain bullish due to the higher high wave that is printed on the graph during the last upside move.
Released by both Australia’s Commonwealth Bank and Markit Economics, the Industrial Purchasing Managers Index (PMI) tests market conditions in the manufacturing industry. On September 18, it is forecast to drop from 53.6 to 48.3, compared with last month’s results, according to economists’ estimates.
The manufacturing PMI is a significant predictor of Australia’s market and economic conditions. This leads to an economy becoming bearish, if the signals are below 50.
The AUDUSD is traded for a price of 0.7283 with a few support levels, these support levels prevent the price from slipping and also can help to hold the price at the given level.
It is also positive for the price of the pair, since the decline in the unemployment rate published today may further prevent the pair price or lift it above the level given.
The unemployment rate reflecting toward the total labor workforce, decrease in the unemployment rate pointed to a smooth economy growth of the country.
AUDUSD has the strongest ability to deal with market challenges and to be the best supplier of yield providers.