Aussie Holds Bullish Bias As Positive PMIs Clash With Broad Selling
By: Cedric Thompson
Published: May 22, 2026
Key Points
- AUD weakness is evident despite better PMI data, with AUD/USD down over 0.25% and the Aussie lower against EUR, GBP, and JPY.
- Australian PMIs support the medium-term bullish case, with Services PMI rebounding to 50.7 and Manufacturing PMI rising to 51.3, both above the 50 expansion line.
- AUD/USD needs technical confirmation above the Renko 50-SMA, with price still below the 0.718 zone.
Market Overview
The Australian dollar (AUD) is experiencing broad weakness against major currencies, with notable declines in AUD/USD (down 0.38%), AUD/EUR (down 0.13%), AUD/GBP (down 0.20%), and AUD/JPY (down 0.19%). This decline occurs despite positive Australian PMI data that typically would support the currency.
PMI Data Analysis
The S&P Global Australia Services PMI Flash rose to 50.7 from a previous reading of 47.7, indicating a rebound in services activity. This is a positive sign for the Australian economy, suggesting that it is not deteriorating as severely as previously feared. The Manufacturing PMI also saw an increase, rising to 51.3 from 50.2, which keeps the sector in expansion territory.
Technical Analysis
AUD/JPY
The AUD/JPY pair is currently consolidating around its 50-SMA, indicating potential for an upward move. The momentum indicators show that the RSI has crossed above 50, suggesting bullish momentum may be building.
AUD/USD
For AUD/USD, the price is currently below the 50-SMA on the Renko chart, indicating that bulls need to push the price above this level to regain upward momentum. The current resistance level is at 0.7180, and a breakthrough could lead to a retest of the 0.72775 resistance in the short term.
The Verdict
Current Trend Direction: Bullish
Bias: Positive
Support Levels: 0.6833, 0.71015, 0.70720
Resistance Levels: 0.72715, 0.74070
The medium-term outlook for AUD/USD appears to be consolidating, with the 0.7015 level acting as support. There is hope that momentum will pick up to push the Aussie back above its 50-SMA, allowing for a continuation of its upward trajectory.