US Manufacturing Data Up Next
Looking ahead to today’s US session, the main data focus will be the release of the US flash manufacturing PMI for July. This will be the first glimpse at activity over the month and, on the back of the bumper US data last Friday, will be drawing plenty of attention. Following the move higher in response to June retail sales, USD has been fairly muted this week, though is holding near highs for now.
Should today’s data come in above expectations, there is plenty of appetite for a stronger USD into next week. The market is looking for a small decline on the prior month with forecasts pegging a 62 reading, down from the prior month’s 62.1 reading. As such, the bar is low for an upside surprise, meaning we could see a repeat of last Friday’s USD rally.
Where to Trade US Manufacturing ?
The Aussie has been grinding lower against USD over recent weeks (and months). Currently, the pair is rebounding off the .7339 support. However, while .7413 holds as resistance, the focus is on a continuation lower, in line with bearish MACD and RSI readings. A break below current lows will target the .7243 level support next.