AUDUSD – Aussie Dollar Poised For Further Declines Vs US Dollar

Key Points

  • The Aussie Dollar made a top at 0.7620 against the US Dollar and currently under selling pressure.
  • There was a break below a crucial bullish trend line with support at 0.7585 on the hourly chart of AUDUSD.
  • Today in Australia, the Westpac Leading Index for May 2017 was released by the Melbourne Institute.
  • The outcome was mostly in line with the forecast, as the index remained unchanged at 0%.

AUDUSD Technical Analysis

The Aussie Dollar traded higher recently towards 0.7620-40 against the US Dollar, but faced a lot of offers and started a downside move. The GBPUSD pair made two attempts to break 1.2820, but failed and moved down sharply below the 1.2750 support.

It also broke the 21 hourly simple moving average and a crucial bullish trend line with support at 0.7585 on the hourly chart.

During the downside, the pair also broke the 0.7586 and 0.7570 supports and traded as low as 0.7549. It may correct a few pips higher, but most likely to face sellers near the 50% Fib retracement level of the last decline from the 0.7622 high to 0.7549 low.

Australia’s Westpac Leading Index

Today in Australia, the Westpac Leading Index for May 2017 was released by the Melbourne Institute. The market was positioned for a minor increase of 0.1% in the index.

The actual result was mostly in line with the forecast, as the index remained unchanged at 0%, which was better than the last decline of 0.1%. The report stated that “The six month annualised growth rate in the Westpac-Melbourne Institute Leading Index, which indicates the likely pace of economic activity relative to trend three to nine months into the future, eased from 1.01% in April to 0.62% in May“.

Overall, the AUDUSD pair is likely to decline further and test the 0.7520 support area in the near term.

Original Article