Key Points
- The Aussie Dollar made a nice upside move after trading as low as 0.7808 against the US Dollar.
- There was a break above a bearish trend line at 0.7830 on the hourly chart of AUDUSD.
- Recently in Australia, the Wage Price Index for Q2 2017 was released by the Australian Bureau of Statistics.
- The outcome was in line with the forecast, as there was a rise of 0.5% in the index (QoQ).
AUDUSD Technical Analysis
The Aussie Dollar was under pressure during the past few sessions and traded towards the 0.7800 handle against the US Dollar. The AUDUSD pair traded as low as 0.7808 where it found support and moved higher towards the 0.7840 level.
The pair was able to move above the 38.2% Fib retracement level of the last decline from the 0.7876 high to 0.7808 low. There was also a break above a bearish trend line at 0.7830 on the hourly chart of AUDUSD.
At the moment, the pair is trading near the 50% Fib retracement level of the last decline from the 0.7876 high to 0.7808 low. A break above 0.7850 would take the pair towards 0.7860 and 0.7875.
Australia’s Wage Price Index
Today in Australia, the Wage Price Index for Q2 2017 was released by the Australian Bureau of Statistics. The market was positioned for a rise of 0.5% in the index compared with the previous quarter.
The actual result was in line with the forecast, as there was a rise of 0.5% in the index. In terms of the yearly change, there was an increase of 1.9% in the index, which is similar to the last reading. The report added that:
This trend and seasonally adjusted indexes for Australia both rose 0.5% in the June quarter 2017. This continues the subdued rate of wage growth recorded by the series over the last two years.
Overall, the AUDUSD pair might continue to move higher towards 0.7860 in the near term.
