Key Points
- Aussie dollar traded higher against the US Dollar, and it looks set for more gains in the short term.
- There is an ascending channel pattern formed on the hourly chart of the AUDUSD pair, which is taking the pair higher.
- In Australia, the TD Securities Inflation released by The University of Melbourne – Faculty of Economics and Commerce posted a rise of 0.6% in June 2016.
- In terms of the yearly change, there was a rise of 1.5% in June 2016.
Technical Analysis
The Aussie dollar after trading as low as 0.7305 against the US Dollar started to trade higher and currently above the 100 and 50 hourly simple moving averages. There is an ascending channel pattern formed on the hourly chart of the AUDUSD pair, which is acting as an upside move catalyst.
As long as the pair is above the 50 hourly SMA, there is a chance of it breaking the channel and moving higher.
On the upside, the next resistance can be around the last swing high of 0.7640.
Australian TD Securities Inflation
In Australia, the TD Securities Inflation, which estimates inflation in the Australian economy was released by The University of Melbourne – Faculty of Economics and Commerce. The market was not expecting any major increase, but the outcome was positive, as there was a rise of 0.6%.
In terms of the yearly change, there was a rise of 1.5% in June 2016. The report highlighted that “Contributing to the overall change in June were price rises for automotive fuel (+7.6 percent), holiday travel and accommodation (+7.4 percent) and fruit and vegetables (+6.4 percent). These were primarily offset by decreases in clothing and footwear (‐1.1 percent), and insurance and financial services (‐0.5 percent)“.
Overall, the AUDUSD pair is trading positively, and may trade further higher.
