AUDUSD – Aussie Dollar Holding Crucial Support Vs US Dollar

Key Points

  • The Aussie Dollar corrected lower from the 0.7890 swing high against the US Dollar.
  • There is a major bullish trend line forming with support at 0.7835 on the hourly chart of AUDUSD.
  • Today in Australia, the Westpac Leading Index for Sep 2017 was released by the Melbourne Institute.
  • The outcome was above the forecast of 0% as there was a rise of 0.1% in the index (MoM).

AUDUSD Technical Analysis

The Aussie Dollar made a nice upside move towards the 0.7900 level against the US Dollar. The AUDUSD pair traded as high as 0.7892, where it faced sellers and later started a downside move towards the 0.7840 level.

The pair declined and broke the 0.7850 support along with the 21 hourly simple moving average to test a bullish trend line with support at 0.7835 on the hourly chart.

The pair is currently correcting higher, but facing sellers near the 50% Fib retracement level of the last decline from the 0.7892 high to 0.7818 low. A close above the 0.7860 and a bearish trend line on the same chart is needed for buyers to take control in the near term.

Australia’s Westpac Leading Index

Recently in Australia, the Westpac Leading Index for Sep 2017 was released by the Melbourne Institute. The market was positioned for the Westpac Leading Index to remain stable with no change compared with the previous month.

The actual result was above the forecast of 0% as there was a rise of 0.1% in the index. It was also better than the last decline of 0.1%. The report added that:

The growth rate remains negative pointing to below trend momentum and a sharp turnaround from strong positive, above trend reads at the start of the year.

Overall, the AUDUSD pair might correct high as long as it is above the 0.7830-20 support area.

Original Article