Key Points
- The Aussie Dollar tumbled recently and declined below 0.7700 against the US Dollar.
- There is a monster bearish trend line forming with resistance at 0.7675 on the hourly chart of AUDUSD.
- Recently in Australia, the Producer Price Index for Q3 2017 was released by the Australian Bureau of Statistics.
- The outcome was below the forecast of +0.4% as there was a rise in the index by 0.2% (QoQ).
AUDUSD Technical Analysis
The Aussie Dollar was under a lot of pressure this week and started a downside move from the 0.7850 swing high against the US Dollar. The AUDUSD pair declined and traded below the 0.7700 support area to settle below the 21 hourly simple moving average.
The pair recently traded as low as 0.7630 and is currently correcting higher. On the upside, there is a monster bearish trend line forming with resistance at 0.7675 on the hourly chart.
The trend line resistance is near the 50% Fib retracement level of the last decline from the 0.7719 high to 0.7630 low. Therefore, selling rallies near the 0.7870-80 can be considered in the near term.
Australia’s Producer Price Index
Recently in Australia, the Producer Price Index for Q3 2017 was released by the Australian Bureau of Statistics. The market was positioned for an increase in the index by 0.4% compared with the previous quarter.
The actual result was below the forecast of +0.4% as there was a rise in the index by 0.2%. Looking at the yearly change, there was a rise of 1.6% in the index, compared with the last rise of 1.7%. The report added that:
It is mainly due to rises in the prices received for Electricity, gas and water supply (+4.9%), Heavy and civil engineering construction (+0.7%) and Building construction (+0.3%).
Overall, the AUDUSD pair remains in a downtrend and likely to break 0.7630 for further losses.
