Key Points
- The Aussie Dollar surged higher recently and traded towards 0.7950 level against the US Dollar.
- There is a crucial bullish trend line with support at 0.7885 forming on the hourly chart of AUDUSD.
- Today in Australia, the Westpac Leading Index for June 2017 was released by the Melbourne Institute.
- The outcome was below the forecast, as the index declined by 0.1% (MoM).
AUDUSD Technical Analysis
The Aussie Dollar made a nice upside move and traded more than 200 pips higher to trade close to the 0.7950 level against the US Dollar. The AUD/USD pair is currently correcting from the 0.7947 high and placed well above the 21 hourly simple moving average.
An initial support is near the 23.6% Fib retracement level of the last wave from the 0.7786 low to 0.7947 high.
There is also a crucial bullish trend line with support at 0.7885 forming on the hourly chart. The trend line support is around the 38.2% Fib retracement level of the last wave from the 0.7786 low to 0.7947 high and the 21 hourly simple moving average. Overall, the trend is positive for AUD/USD above 0.7850 in the near term.
Westpac Leading Index
Today in Australia, the Westpac Leading Index for June 2017 was released by the Melbourne Institute. The market was positioned for no change in the index compared with the previous month.
The actual result was below the forecast, as the index declined by 0.1%. The report mentioned that:
The six month annualised growth rate in the Westpac-Melbourne Institute Leading Index, which indicates the likely pace of economic activity relative to trend three to nine months into the future, fell sharply from 0.51% in May to –0.76% in June.
Overall, the AUDUSD pair looks set to gain pace and declines towards 0.7885 remains supported.
