The Australian Dollar (AUD) continued its downward slide on Monday, pressured by a resurgent US Dollar following positive US manufacturing data.
US ISM PMI Surprises with Expansionary Reading
The US ISM Manufacturing PMI unexpectedly rebounded to 50.03 in March, signaling expansion after a prolonged contractionary period. This beat market forecasts of 48.2. Additionally, the Prices Paid subindex surged at its fastest rate in nearly two years, highlighting potential inflationary pressures.
Technical Outlook: AUD/USD Bears in Control
The AUD/USD pair has decisively broken below the bottom of a triangle pattern at 0.6530, a level that had previously capped recovery attempts. This shift signals increasing bearish momentum.
Currently, the pair is testing the 0.6480 support level. A sustained break below this point could pave the way towards the significant target at 0.6440. On the upside, the breached triangle trendline at 0.6530 now acts as immediate resistance, followed by 0.6555.