Key Points
- The Aussie dollar was under pressure, and traded towards 0.7500 against the US Dollar.
- There is a major resistance at 0.7540 and a bearish trend line formed on the hourly chart of AUDUSD.
- Today in Australia, the Home Loans report for Jan 2017 was released by the Australian Bureau of Statistics.
- The result was above the forecast, as the Home Loans rose 0.5% in Jan 2017, more than the forecast of -1%.
AUDUSD Technical Analysis
The Aussie dollar declined this week and moved below a major support area at 0.7550 against the US Dollar. The AUDUSD pair traded as low as 0.7495 from where a recovery was started. The pair is currently trading near the 23.6% Fib retracement level of the last decline from 0.7609 high to 0.7495 low.
It may move further higher, but there are many resistances on the way up like 0.7540 and a bearish trend line formed on the hourly chart.
Moreover, the 21 hourly simple moving average at 0.7530 might also act as a resistance. So, one may consider selling rallies as long as the pair is below 0.7570.
Australian Home Loans
Today in Australia, the Home Loans report for Jan 2017 was released by the Australian Bureau of Statistics. The market was expecting the number of home loans to decline by 1% in Jan 2017, compare with the previous month.
The outcome was above the forecast, as the Home Loans rose 0.5% in Jan 2017, which was also more than the last revised +0.2%. The report stated that the “trend estimate for the total value of dwelling finance commitments excluding alterations and additions rose 1.1%. Investment housing commitments rose 1.9% and owner occupied housing commitments rose 0.5%”.
Overall, there is a chance that the Aussie dollar might recover in the near term, but it could face sellers near 0.7540 and 0.7560.
