Australia remains closely linked to Chinese economy and AUD is impacted by any news from China. And this morning, they were optimistic. Indeed, official data showed that China’s official Manufacturing PMI edged up to 50.9 in June (50.5 expected) from 50.6 in May and Non-manufacturing PMI climbed to 54.4 (53.6 expected) from 53.6.
From a technical point of view, on a daily chart, the AUD/USD consolidates above former resistance at 0.6650 and stands above its 50-day moving average (in blue). The daily RSI remains within its buying area. Readers may therefore consider the potential for further advance above 0.6650. The nearest resistance would be set at 0.7040 (YTD high) and a second one would be set at 0.7180 (July 19 resistance) in extension.