The Australian Dollar (AUD) inched lower against the US Dollar (USD) on Tuesday, decreasing the price of AUDUSD to less than 0.7200 following some key economic releases. The technical bias shall remain bearish because of a lower low in the recent downside move.
AUD/USD Technical Analysis
As of this writing, the pair is being traded around 0.7124. On the downside, a support can be noted around 0.7044 the trend line support ahead of 0.7000 the psychological number and then 0.6823, the major horizontal support level as demonstrated in the given below daily chart.
On the upside, a hurdle can be noted near 0.7244, an immediate trendline resistance level ahead of 0.7458, the 38.2% Fib level resistance and then 0.7586, the key horizontal resistance in the given above chart. The technical bias shall remain bearish as long as the 0.7297 resistance area is intact.
US ISMI Prices Paid News
In the US, the figure concerning the price index of ISMI remained 72.1 in August, as compared to 73.2 during the month before, up beating the economist expectation which was 70.2. The data is sourced from the news released by the US Institute for Supply Management.
It shows the prevailing condition of the manufacturing market of the country. The figure is derived after taking into account various elements of the market such as new orders placed, the estimated rate of production for the future, employment rate, available inventories, and deliveries made so far.
Please note that the figure concerning the price index of ISM is considered as a sensitive indicator of the US economy. It is also taken as an indicator of the sentiment of business concerning the inflation that may occur in a due course of time. Generally speaking, a high reading in this regard is considered as a bullish trend for the US Dollar (USD) whereas a low reading implies a bearish trend for the US Dollar (USD).
Trade Idea
Considering the overall technical and fundamental outlook, selling the pair around current levels may be a good strategy in short to medium term.