Key Points
- The Aussie Dollar started a recovery after declining towards 0.7730 against the US Dollar.
- There was a break above a contracting triangle with resistance at 0.7760 on the hourly chart of AUDUSD.
- Recently in Australia, the National Australia Bank Business Confidence for Sep 2017 was released.
- The outcome was above the forecast of 6, as the Business Confidence rose from 5 to 7.
AUDUSD Technical Analysis
The Aussie Dollar declined recently and traded below the 0.7780 support area against the US Dollar. The AUDUSD pair even moved below 0.7750 and the 21 hourly simple moving average to trade as low as 0.7735.
Later, the pair started a correction and traded above the 23.6% Fib retracement level of the last decline from the 0.7875 high to 0.7735 low. There was a break above a contracting triangle with resistance at 0.7760 on the hourly chart and the 21 hourly SMA.
However, the pair is approaching a major resistance near 0.7800 and the 50% Fib retracement level of the last decline from the 0.7875 high to 0.7735 low. The mentioned 0.7800 resistance is also near a connecting bearish trend line on the same chart.
National Australia Bank Business Confidence
Recently in Australia, the National Australia Bank Business Confidence for Sep 2017 was released. The market was positioned for the Business Confidence to rise from the last reading of 5 to 6.
The actual result was above the forecast of 6, as the Business Confidence rose from 5 to 7. On the other hand, the NAB´s Business Conditions Index remained at 14 in Sep 2017. The report added that:
Business conditions stayed rock solid in September, while confidence edged up following the big decline last month. Business conditions are holding at levels just a little below the peaks experienced prior to the GFC.
Overall, the AUDUSD pair might continue to correct higher, but most likely to face sellers near 0.7800-0.7805.
