FxWirePro: AUD/USD consolidates around 21-EMA. mixed Aussie PMIs fail to support

Chart - Courtesy Trading View 

Spot Analysis:

AUD/USD was trading 0.37% lower on the day at 0.7079 at around 06:35 GMT

Previous Week's High/ Low: 0.7073/ 0.6872

Previous Session's High/ Low: 0.7126/ 0.7040

Fundamental Overview:

Australian dollar renews intraday low after mixed PMI data failed to provide any support

Australia’s S&P Global Manufacturing PMI for May came in softer at 55.3, versus 57.8 expected and 58.8 prior.

Services PMIs, on the other side, rose past market consensus to 53.0, compared to 56.6 prior (revised) and 52.2 forecast.

Composite PMI also eased to 52.5 from 55.9 prior.

Covid updates from China, US preliminary PMIs and Powell's speech will be major catalysts for price movement in the day.

Technical Analysis:

- AUD/USD erases some of the previous session's gains and hovers around 21-EMA support

- MACD confirms a bullish crossover on signal line, momentum is bullish

- Price action is above 200H MA and weakness likely on break below

- Bullish 5-DMA crossover on 20-DMA adds to the upside bias

Major Support and Resistance Levels:

Support - 0.7076 (21-EMA), 0.7034 (20-DMA)

Resistance - 0.71, 0.7181 (55-EMA)

Summary: AUD/USD shows potential for upside continuation. 21-EMA will be key support to watch. Retrace below negates further upside.