Key Points
- The Aussie dollar after correcting towards the 0.7580 level against the US Dollar, started moving higher once again.
- There was a contracting triangle break noted on the hourly chart of the AUDUSD pair, which ignited an upside move.
- Today, the Westpac Consumer Confidence was released by the Faculty of Economics and Commerce Melbourne Institute.
- The result was a bit lower, as there was a decline from the last reading of 102.2 to 98.1 in July 2016.
Technical Analysis
The Aussie dollar corrected from the 0.7658 high against the US Dollar and traded as low as 0.7578 before gaining bids. The AUDUSD pair traded higher once again, and also broke a contracting triangle break noted on the hourly chart.
The pair is currently trading near the 61.8% Fib retracement level of the last drop from the 0.7658 high to 0.7578 low, which is acting as a resistance.
A break and close above it could take the pair further higher may be towards the last high of 0.7658.
Westpac Consumer Confidence
Earlier today, the Westpac Consumer Confidence, which captures the level of sentiment that individuals have in economic activity reflecting respondents’ evaluations of their family finances over the past and coming year was released by the Faculty of Economics and Commerce Melbourne Institute. The result was disappointing, as there was a decline from the last reading of 102.2 to 98.1 in July 2016.
The report stated that “With the major events of ‘Brexit’ and prolonged election uncertainty it is not surprising to see a fall in the Index. In fact, given these developments, this fall appears to be surprisingly modest“.
Overall, there is a chance that the AUDUSD pair trade further higher and even challenge the 0.7650 level.
