- Aussie Dollar managed to pop higher against the US Dollar recently and closed above 0.7650.
- There is a contracting triangle pattern formed on the hourly chart of the AUDUSD pair, which may provide us the next break.
- Chinese Manufacturing Purchasing Managers Index (PMI) released by the China Federation of Logistics and Purchasing (CFLP) posted an increase from 49.0 to 50.2 in March 2016.
- Moreover, the Chinese official non-manufacturing PMI rose from 52.7 to 53.8 in March 2016.
The Aussie dollar gained traction recently against the US Dollar and managed to close above the 0.7650 resistance area which is acting as a support now. Currently, there is a contracting triangle pattern formed on the hourly chart of the AUDUSD pair, which may either break up or down for the next move.
The chances of a break higher is more, as the pair is above the 100 and 50 hourly simple moving average.
On the upside, a break could lead the pair towards the 0.7720 level, or even 0.7740 in the short term.
Chinese Manufacturing PMI
Earlier during the Asian session, the Manufacturing Purchasing Managers Index (PMI) that studies business conditions in the Chinese manufacturing sector was reported by the China Federation of Logistics and Purchasing (CFLP). The market was expecting the PMI to rise from 49.0 to 49.3 in March 2016. However, the outcome was positive, as there was a rise in the PMI to 50.2.
The report highlighted that the “Outputs are expanding, and the New Orders, New Export Orders, Stocks of Finished Goods, Backlogs of Orders, Purchases of Inputs, Imports, Stocks of Major Inputs contracting”.
In short, the report was positive, which also lifted the sentiment for AUDUSD. So, there are chances of more gains moving ahead.