Aussie remains in red as weak data boost growth slowdown fears
The Aussie dollar holds in red for the second consecutive day, following a double-rejection under psychological 0.70 barrier and came under increased pressure on downbeat economic data.
Australia’s composite PMI which tracks the activity in manufacturing and services sectors, fell to 52.6 in June from 52.9 in May, raising fears about economic growth slowdown.
Fresh weakness pressures June low at 0.6850 and more significant May’s low at 0.6828 (the lowest since June 2020), with break here to signal an end of six-week corrective phase and continuation of larger downtrend.
Daily MA’s are in full negative configuration, bearish momentum remains strong and RSI is heading south, while weekly studies are also bearish that keeps the downside at risk, along with negative fundamentals highlighted by soaring inflation and recession fears.
Falling 10DMA marks solid resistance at 0.6955, with near-term bias to stay with bears while the price action stays below 0.70 barrier.
Res: 0.6923; 0.6955; 0.7000; 0.7055
Sup: 0.6869; 0.6850; 0.6828; 0.6798