Key Points
- The Aussie dollar made a downside move towards 83.20 vs the Japanese yen where it found support.
- The AUDJPY is currently moving higher, but may face two bearish trend lines with resistance at 83.90 and 84.10 on the hourly chart.
- Today in Australia, the AiG Performance of Services Index for March 2017 was released by the Australian Industry Group.
- The result was above the forecast, as the Services Index increased from the last reading of 49 to 51.7.
AUDJPY Technical Analysis
The Aussie dollar faced a lot of pressure lately against the Japanese yen, as it fell towards 83.20. Later, the AUDJPY pair started a correction, and moved above the 23.6% Fib retracement level of the last decline from the 84.961 high to 83.23 high.
However, the pair is likely to face two bearish trend lines with resistance at 83.90 and 84.10 on the hourly chart. The same area also coincides with the 21 hourly simple moving average at 84.06.
Furthermore, the 50% Fib retracement level of the last decline from the 84.961 high to 83.23 high is also waiting to act as a resistance at 84.07.
AiG Performance of Services Index
Today in Australia, the AiG Performance of Services Index for Feb 2017 was released by the Australian Industry Group. The market was expecting the Services Index to remain below 50 in March 2017, compared with the last reading of 49.
The outcome was above the forecast, as the Services Index increased from the last reading of 49 to 51.7. The report stated, ”Sales expanded in March (53.8). Employment grew solidly (55.0 points) and new orders improved to 52.3 points. Stocks continued to shrink in March (45.1 points) and supplier deliveries fell into contraction (46.3 points)”.
Overall, the AUDJPY might correct higher, but most likely to face offers near the 84.10-84.20 level in the near term.
