Key Points
- The Aussie dollar managed to trade higher recently against the US Dollar and remained in an uptrend.
- The AUDUSD pair during the upside move broke a short-term bearish trend line on the hourly chart.
- Today, the Westpac Leading Index released by the Melbourne Institute posted no change in August 2016.
- The Fed interest rate decision is lined up later today, which may impact the US dollar and pairs like EURUSD, GBPUSD, AUDUSD and others.
AUDUSD Technical Analysis
The Aussie dollar remained in an uptrend against the US dollar, and every time there was a dip, buyers appeared. There was a bearish trend line on the hourly chart of the AUDUSD pair, which was broken during the recent move.
The pair is currently trading with a bullish bias, and any dips from the current levels can be seen as a buying opportunity.
On the upside, the next stop for the Aussie dollar bulls is around the 0.7620 level.
Australian Westpac Leading Index
Earlier during the Asian session, Westpac Leading Index, which tracks nine gauges of economic activity, including share prices and telephone installations, to provide an indication of how the economy will perform was released by the Melbourne Institute. The forecast was lined up for no major increase in the index in August 2016, compared with the previous month.
The result was neutral, as there was no change in the index (0%). Commenting on the report, the Westpac’s Chief Economist, Bill Evans, stated “The August reading is consistent with a trend that has been building for some months now. The positive Index growth rate follows 15 consecutive months where growth has been below trend. It is the first above trend result since early last year and the second strongest since December 2013. The Leading Index is clearly signaling that the economy is likely to continuing growing around its long run trend rate of about 3% a year”.
Overall, there was nothing negative for the Aussie dollar, which may help the buyers in the near term.
