Key Points
- The Aussie dollar is trading with a bearish bias versus the US dollar and looks set for more losses.
- There is a bearish trend line formed on the hourly chart of the AUDUSD, which is acting as a resistance for the pair.
- The Conference Board Australia leading Index will soon be released by the Conference Board.
- The market is expecting an increase in the Conference Board Australia leading Index, which is a positive sign.
AUDUSD Technical Analysis
The Aussie dollar traded lower during the Asian session today against the US Dollar, as the market sentiment was against the AUD. There is a bearish trend line formed on the hourly chart of the AUDUSD, which is acting as a hurdle and preventing gains in the pair.
Moreover, the pair is also below the 21 hourly simple moving average, which means the pair may decline further in the near term.
If the pair corrects higher from the current levels, then the 21 hourly SMA may act as a resistance zone. One may consider selling rallies as long as the pair is below the 50% Fib retracement level of the last drop from the 0.7720 high to 0.7583 low.
Conference Board Australia leading Index
Moving ahead, there is a minor risk event lined up in Australia. The Conference Board Australia leading Index, which measures future trends of the overall economic activity including employment, average manufacturing workweek, initial claims, and permits for new housing construction, stock prices and yield curve will be published by the Conference Board.
The market is expecting an increase in June 2016. If the outcome is positive, then the Aussie dollar may gain bids in the short term.
Overall, the trend is down for the AUDUSD pair, but it now depends on the incoming data how it trades moving ahead.
