AUDUSD: Profit Taking Kicks In as ISM Non-Mfg. Disappoints

The AUDUSD rose by 14 pips from today’s London session low of 0.7601 following the disappointing news that the U.S. ISM Non-Manufacturing Composite rose by 57.4 vs. the 59 anticipated in a Bloomberg poll. The disappointing news appears to have trigger profit taking in the AUDUSD, which declined sharply today from a London morning high of 0.7654.
Looking beyond the near-term price action, the AUDUSD short-term trend might have turned bullish following the break of the November 27 high earlier today. We can also see on the chart below that the AUDUSD created a higher daily low on November 30 and December 4. This suggests to me that bullish tradersare in control as long as the price trades above 0.7566, which is a price level just below the December 4 low.
This idea was communicated in real time in our Trade the News webinar. Make sure you join our next session.

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