Key Points
- The Aussie Dollar struggled recently against the US Dollar and moved below a major support at 0.7700.
- There was a break below two bullish trend lines with support at 0.7710 and 0.7680 on the hourly chart of AUDUSD.
- Today in Australia, the Westpac Leading Index for Feb 2017 was released by the Melbourne Institute.
- The result was below the forecast, as there was a decline of 0.1%, compared with the last reading of 0%.
AUDUSD Technical Analysis
The Aussie Dollar was under a lot of pressure against the US Dollar, as it moved below the 0.7720 and 0.7700 support levels. The AUDUSD pair also broke many other supports, including two bullish trend lines at 0.7710 and 0.7680 on the hourly chart.
The pair also moved below the 21 hourly simple moving average and traded close to the 0.7650 support.
The pair is currently attempting a recovery from the 50% Fib retracement level of the last wave from the 0.7540 low to 0.7749 high. However, it is likely to face resistance near the 0.7690 and 0.7700 levels.
Australian Westpac Leading Index
Today in the Australia, the Westpac Leading Index for Feb 2017 was released by the Melbourne Institute. The market was expecting the indicator that tracks nine gauges of economic activity, including share prices and telephone installations to remain mostly unchanged from the last reading in Feb 2017.
The outcome was below the forecast, as there was a decline of 0.1%, compared with the last reading of 0%. Commenting on the report, the Westpac’s Senior Economist, Matthew Hassan, stated, “The Leading Index continues to point to above trend growth momentum, albeit with the pace moderating since the start of the year.”
Overall, the Aussie dollar has no reason as the moment to gain, which is why AUDUSD might continue to face sellers near 0.7700 in the short term.
