Key Points
- The Aussie Dollar recovered well from the 0.7628 low against the US Dollar.
- The AUDUSD pair is currently facing a major bearish trend line with resistance at 0.7675-80 on the hourly chart.
- Recently in Australia, the Home Loans report for Sep 2017 was released by the Australian Bureau of Statistics.
- The outcome was below the forecast of +3.0% as there was a decline in loans by 2.3%.
AUDUSD Technical Analysis
The Aussie Dollar after declining towards the 0.7625 support zone found support against the US Dollar. The AUDUSD pair recovered well and moved above the 0.7650 resistance to settle above the 21 hourly simple moving average.
However, the pair is currently facing a major bearish trend line with resistance at 0.7675-80 on the hourly chart. It might struggle to break the 0.7680 level and move down once again.
On the downside, the 21 hourly SMA and the 38.2% Fib retracement level of the last wave from the 0.7628 low to 0.7685 high are decent support. On the flip side, a close above 0.7680 and 0.7700 could ignite gains toward 0.7750.
Australian Home Loans
Recently in Australia, the Home Loans report for Sep 2017 was released by the Australian Bureau of Statistics. The market was positioned for the loans to increase by around 3% compared with the last increase of 1%.
The actual result was below the forecast of +3.0% as there was a decline in loans by 2.3%. The last reading was revised up from 1% to 1.5%. The report stated that:
The trend estimate for the total value of dwelling finance commitments excluding alterations and additions fell 0.1%. Owner occupied housing commitments rose 0.2% while investment housing commitments fell 0.5%.
Overall, the AUDUSD might find it very hard to break the 0.7675-80 resistance area and settle above 0.7700.
