Key Points
- The Aussie dollar tested the 0.7530 support recently against the US Dollar, and started recovering.
- There is a support trend line formed on the hourly chart of the AUDUSD pair, which stopped the downside move.
- Today, the Australian Westpac Consumer Confidence was released by the Faculty of Economics and Commerce Melbourne Institute.
- The outcome was better than the last reading of 0.3%, as it came in at 1.1% in Oct 2016.
AUDUSD Technical Analysis
The Aussie dollar recovered well after testing the 0.7530 support area against the US Dollar. As mentioned, there a support trend line formed on the hourly chart of the AUDUSD pair that protected the downside move.
The pair is now back above the 21 hourly simple moving average, which is a positive sign and may lift the market sentiment in the near term.
So, there is a chance of more gains since the hourly RSI is also above the 50 level and heading north.
Australian Westpac Consumer Confidence
Today in Australia, the Australian Westpac Consumer Confidence, which captures the level of sentiment that individuals have in economic activity was released by the Faculty of Economics and Commerce Melbourne Institute.
The market was expecting a rise of around 0.5% in Oct 2016, compared with the last 0.3%. However, the result was better, as there was an increase of 1.1%. However, it cannot be seen as a major positive, as highlighted in the report as “Disappointing results continue. The Index has now been growing below trend for the last nine months. It continues to signal that growth in the Australian economy in the first half of 2016 will be below trend. Today’s print represents the largest negative deviation we have seen since the second half of 2011”.
In short, the Aussie dollar may struggle, but there is a chance of a move towards the 0.7600 handle in the near term.
