Key Points
- The Aussie Dollar traded higher today vs the US Dollar, but found sellers near 0.7220.
- There is a bearish trend line formed on the hourly chart of the AUDUSD, acting as a resistance area for the pair.
- The pair is below the 100 hourly simple moving average, which is a bearish sign for the bulls.
- Australian Construction Work Done released by the Australian Bureau of Statistics posted a decline of 2.6%, more than the expectation in Q1 2016.
Technical Analysis
If we look at the big picture, the Aussie Dollar is in a downtrend vs the US dollar and recently traded as low as 0.7145. The AUDUSD pair is currently attempting to trade higher, but facing resistance near a bearish trend line formed on the hourly chart.
Moreover, the 100 hourly simple moving average is also around the trend line, so there is a major resistance formed near 0.7210-20.
On the downside, the pair may find bids near the 50 hourly SMA. So, we can say there is a slight chance of the pair gaining pace and trading higher.
Australian Construction Work Done
Today, the Construction Work Done was released by the Australian Bureau of Statistics. The market was expecting the number of construction work done in the last month to post a decline of 1.5% in Q1 2016. However, the decline was on the higher side, as the Construction Work decreased 2.6%.
The report highlighted that the “trend estimate for engineering work done fell 6.5% in the March quarter. The seasonally adjusted estimate for engineering work done fell 4.2% to $23,010.0m in the March quarter”.
Overall, it looks like the trend line resistance along with the 100 hourly SMA holds the key for AUDUSD in the near term.
