AUD to GBP Downside Bias Intact Below 0.5514


AUD to GBP slide to three-week lows as the pair continues lower for the fifth straight session. The Australian dollar is under selling pressure the last two weeks as the rising number in new coronavirus cases increase investors concerns that the recent recovery might be halted. The State of Victoria has imposed additional restrictions measures and after the midnight curfew.

Looking at the fundamentals, the manufacturing sector in the UK shows signs of improvement in the third quarter as the new orders rise for the first time the last five months while the output growth rose to three year highs. The final UK manufacturing PMI reported at 53.3 lower than the forecasts of 53.6 for July.

From the land of down under the jobs advertised in July increase by 16.7% following a 42% rise in June, but came below the expectations of a 37% increase. The Australian manufacturing PMI reported in at 53.4 beating the estimates for July. The AiG Performance of Manufacturing Index jumped to 53.5 in July from 51.5.

AUD to GBP Daily Technical Analysis 

AUD to GBP is 0.30% lower at 0.5442 the lowest level since June 15, as the correction that started from eleven-month highs accelerates below the 50-day moving average. Bears are now in control at least for the short term, and the first support would be met at 0.5433 today’s low. The 100-day moving average at 0.5322 is critical support.  

On the contrary, initial resistance for AUDGBP stands at 0.5462 the daily top. What can cancel the recent bearish momentum is a break above the 50-day moving average at 0.5516. More selling pressure would be met at 0.5571 the top from July 24. 

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AUDGBP Price Daily Chart

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