Key Points
- The Aussie Dollar made a nice upside move after trading towards 0.7330 against the US Dollar.
- The AUDUSD pair recently broke a major bearish trend line with resistance at 0.7380 on the hourly chart.
- In Australia today, the Home Loans figure for March 2017 was released by the Australian Bureau of Statistics.
- The result was below the forecast, as the Home Loans decreased by 0.5% in March 2017.
AUDUSD Technical Analysis
The Aussie Dollar after trading as low as 0.7329 against the US Dollar found support and moved higher. The AUDUSD traded higher, and cleared the 21 hourly simple moving average and a major bearish trend line with resistance at 0.7380 on the hourly chart.
The pair moved above the 50% Fib retracement level of the last decline from the 0.7430 high to 0.7330 low.
The pair recently traded close to the last swing high at 0.7420-30 where it faced offers. So, it is currently correcting lower, and may find support near the 21 hourly simple moving average at 0.7380. The 50% Fib retracement level of the last wave from the 0.7335 low to 0.7421 high at 0.7378 may also act as a support.
Australia’s Home Loans
Recently in Australia, the Home Loans figure for March 2017 was released by the Australian Bureau of Statistics. The market was expecting no change in the home loans in March 2017, compared with the decline of 0.5%.
The outcome was below the forecast, as the Home Loans decreased by 0.5% in March 2017. The last reading was also revised to 0.8%. The report added that the “trend estimate for private sector houses approved fell 0.6% in March and has fallen for 12 months. The seasonally adjusted estimate for private sector houses fell 4.3% in March following a rise of 5.0% in the previous month”.
Overall, the AUDUSD pair may correct a few pips lower in the near term, but may find support at 0.7375-70.
