Key Points
- The Aussie dollar after trading as low as 0.7516 against the US Dollar, started consolidating losses.
- There is a range pattern formed on the hourly chart of AUDUSD with resistance on the upside at 0.7575-80.
- Today, the Australian New Motor Vehicle Sales was released by the Australian Bureau of Statistics.
- The market was not expecting any decline in sales, but there was a decrease of 2.4% in Oct 2016.
AUDUSD Technical Analysis
The Aussie dollar traded lower recently to test the 0.7510-20 support area against the US dollar. Later, the AUDUSD pair found buyers and started consolidating losses in a range with resistance at 0.7575 and support at 0.7520.
On the upside, the range resistance is also coinciding with a bearish trend line formed on the hourly chart of AUDUSD, and the 50% Fib retracement level of the last decline from the 0.7630 high to 0.7516 low.
So, it looks like on the upside, the 0.7575-80 resistance is very important, and it won’t be easy for the buyers to break it.
Australian New Motor Vehicle Sales
Today, the Australian New Motor Vehicle Sales, which measures motor vehicle sales in Australia was released by the Australian Bureau of Statistics. The market was not expecting any major decline in sales in Oct 2016, compared with the previous month.
However, there was a decline of 2.4%. In terms of the yearly change, the Australian New Motor Vehicle Sales increased 1.2%. The report added that “When comparing national trend estimates for October 2016 with September 2016, sales for Passenger vehicles and other vehicles decreased by 0.7% and 0.1% respectively. By contrast, sales for Sports utility vehicles increased by 1.4%”.
Overall, the AUDUSD pair may continue to trade in a range until there is a break either higher or lower.
