Recent economic data and forecasts have the potential to greatly influence the direction of the AUD/USD currency pair. In particular, upcoming releases such as the ISM Services PMI, Australian GDP numbers, US Services PMI, and the US Jobs Report are likely to play a significant role in shaping market sentiment and investor decisions.
The services sector, which accounts for over 70% of the US economy, is a critical component that cannot be overlooked. Any unexpected shifts in this sector, such as a rise in the ISM Services PMI from 49.4 to 50.5, have the power to impact investor confidence and alter expectations of a Federal Reserve rate cut in September.
Apart from the headline figures, other key indicators such as prices, new orders, and employment trends are likely to be closely monitored. Positive surprises in US labor market data and Services PMIs could lead to a decrease in expectations of a rate cut, potentially strengthening the US dollar against the Australian dollar.
From a technical standpoint, the AUD/USD pair has been exhibiting bullish signals as it trades above both the 50-day and 200-day Exponential Moving Averages (EMAs). A breakout above the $0.66500 level could pave the way for a move towards the $0.67003 resistance, with further upside potential towards the $0.67500 mark. On the other hand, a drop below the $0.66000 support level might signal a bearish trend, potentially leading to a test of the 50-day EMA and the $0.65760 support.
The upcoming economic data releases are poised to have a significant impact on AUD/USD trends. Traders and investors will closely follow key indicators such as the ISM Services PMI, Australian GDP numbers, US Services PMI, and the US Jobs Report to gauge the health of the economy and make informed decisions regarding their positions in the currency pair. Additionally, technical analysis suggests that the AUD/USD may experience further volatility based on market sentiment and price action.