Key Points
- The Australian Dollar is currently correcting higher, but may find sellers near 0.7490-0.7500 against the US Dollar.
- There is a major bearish trend line with resistance at 0.7505 formed on the hourly chart of AUDUSD.
- Today in Australia, the Export Price Index for Q1 2017 was released by the Australian Bureau of Statistics.
- The outcome was better, as there was a rise of 9.4% in prices, compared with the last +12.4%.
AUDUSD Technical Analysis
The Australian Dollar faced a lot of selling pressure lately, and moved below the 0.7490 support area against the US Dollar. There was a decline towards 0.7455 where the AUDUSD pair found support and started correcting higher.
The pair is currently trading higher, and moved above the 23.6% Fib retracement level of the last decline from the 0.7551 high to 0.7455 low.
However, it is facing a major resistance near 0.7490-0.7500. It represents the 38.2% Fib retracement level of the last decline from the 0.7551 high to 0.7455 low. Also, there is a major bearish trend line with resistance at 0.7505 formed on the hourly chart. So, it won’t be easy for buyers to break 0.7500-05 once again.
Australian Export and Import Price Index
Recently in Australia, the Export and Import Price Index for Q1 2017 was released by the Australian Bureau of Statistics. The forecast was lined up for the Export Price Index to increase by around 10% in Q1 2017, compared with the previous quarter.
The result was decent, as there was a rise of 9.4% in prices, compared with the last +12.4%. The Import Price Index rose 1.2% in Q1 2017, more than the last +0.2%. The report stated that the
“rise was driven by higher prices received for Mineral fuels, lubricants, and related materials (+9.2%) and Chemical and related products, n.e.s. (+1.9%). Offsetting these price rises were falls in Machinery and transport equipment (-0.9%) and Commodities and transactions, n.e.s. (e.g. non-monetary gold) (-1.0%)”.
Overall, the AUDUSD pair remains under bearish pressure, and rallies towards 0.7500 could be sold in the near term.
