Key Points
- The Aussie dollar after a dip towards 0.7475 against the US Dollar found support.
- The AUDUSD pair moved higher, and broke a bearish trend line with resistance at 0.7485 on the hourly chart.
- Today in Australia, the National Australia Bank Business Confidence index for March 2017 was released.
- The outcome was lower than the forecast, as the index decreased from the last reading of 7 to 6.
AUDUSD Technical Analysis
The Aussie dollar declined yesterday and traded as low as 0.7476 against the US dollar where it found support and started consolidating. Later, the AUDUSD pair gained bids, and moved above the 23.6% Fib retracement level of the last decline from the 0.7543 high to 0.7476 low.
Moreover, the pair also broke a bearish trend line with resistance at 0.7485 on the hourly chart. However, the upside was protected near the 50% Fib retracement level of the last decline from the 0.7543 high to 0.7476 low.
The pair is now back below the 21 hourly simple moving average, and trading at 0.7500. If the bulls manage to break the 21 SMA again, a move towards 0.7520 is possible.
National Australia Bank Business Confidence
Recently in Australia, the National Australia Bank Business Confidence index for March 2017 was released. The forecast was lined up for no major change in the index from 7 in March 2017.
However, the result was lower than the forecast, as the index decreased from the last reading of 7 to 6. On the other hand, the National Australia Bank Business Conditions index post a solid rise from the last reading of 9 to 114 in March 2017. The report stated that “the longer-term outlook remains less compelling, particularly as major growth drivers (LNG exports, commodity prices and housing construction) begin to fade”.
Overall, there is a chance that the AUDUSD pair may attempt an upside move towards 0.7520 in the near term.
