AUD/USD Rises Amid Positive Economic Indicators and PMI release

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The Australian Dollar started the Monday session on a strong note, accelerating ahead of the ISM Manufacturing PMI release. During the early hours of the Asian session, the AUD received support as Australia's minimum wage increased by 3.75%, aligning with market estimates that ranged from 3.5% to 4.0%.

Key Factors Driving the AUD/USD Pair

Wage Increase: The significant 3.75% increase in the minimum wage in Australia provided a boost to the Australian Dollar, reflecting confidence in the domestic economy.

US Inflation Data: The AUD/USD pair also strengthened following the release of the US Personal Consumption Expenditure (PCE) data. As the Federal Reserve's preferred measure of inflation, the PCE data for April indicated that price pressures were easing, which had a positive impact on the AUD.

Australia's Inflation Rate: Australia's monthly inflation rate accelerated to 3.6%, increasing the likelihood that the Reserve Bank of Australia (RBA) might consider raising interest rates again. This further supported the AUD's upward momentum.

Technical Analysis
From a technical perspective, we can observe a divergence in the price action with the value above the 200 EMA. This suggests a potential bullish setup. Given these technical and fundamental factors, we are looking for a long position on the AUD/USD pair.

Conclusion
The Australian Dollar's strength is underpinned by positive domestic economic indicators and easing US inflation pressures. With the upcoming ISM Manufacturing PMI release, investors will be closely watching for further cues. Based on the current technical setup and supportive fundamentals, a long position on the AUD/USD pair appears favorable.