Key Points
- The Aussie Dollar after a correction found sellers near 1.1170 against the New Zealand Dollar.
- There is a major bearish trend line forming with resistance at 1.1150 on the hourly chart of AUDNZD.
- Today in Australia, the AiG Performance of Services Index for Sep 2017 was released by the Australian Industry Group.
- The outcome was below the forecast of 52.0 as there was a decline from the last reading of 52.1 to 51.4.
AUDNZD Technical Analysis
The Aussie Dollar after forming a low at 1.1076 against the New Zealand Dollar started an upside correction. The AUDNZD pair moved above the 1.1120 level and the 21 hourly simple moving average, but failed to break the 61.8% Fib retracement level of the last decline from the 1.1223 high to 1.1076 low.
The pair moved down and broke a bullish trend line at 1.1155 on the hourly chart and also settled below the 21 hourly SMA. On the upside, there is a major bearish trend line forming with resistance at 1.1150 on the hourly chart.
It seems like the pair might continue to move down and it could easily retest the 1.1075 low in the near term.
AiG Performance of Services Index
Recently in Australia, the AiG Performance of Services Index for Sep 2017 was released by the Australian Industry Group. The market was positioned for a minor decline from the last reading of 52.1 to 52.0.
The actual result was below the forecast of 52.0 as there was a decline from the last reading of 52.1 to 51.4. The report added that:
All five of the activity sub-indexes in the Australian PSI® were above 50 points and indicating growth in September (seasonally adjusted), but four of them grew at a slower pace than in August.
Overall, the AUDNZD pair remains in the bearish zone and it is likely to test the 1.1075 support soon.
