Key Points
- The Aussie Dollar started a downtrend from the 0.8020 high against the US Dollar and moved down.
- There is a crucial descending channel pattern with resistance at 0.7900 forming on the hourly chart of the AUD/USD pair.
- Today in Australia, the Consumer Inflation Expectation for August 2017 was released by the Melbourne Institute.
- The outcome was below the forecast, as the expectation came in at 4.2%, less than the last 4.4%.
AUDUSD Technical Analysis
The Aussie Dollar made a top above 0.8000 against the US Dollar and started moving lower. The AUD/USD pair fell sharply during the past few sessions and even traded below the 0.7900 handle and the 21 hourly simple moving average.
There is a crucial descending channel pattern with resistance at 0.7900 forming on the hourly chart. The pair recently broke the 50% Fib retracement level of the last wave from the 0.7854 low to 0.7912 high, which has opened the doors for more declines.
The pair is currently well below the 0.7900 level and the 21 hourly simple moving average. It may continue to move down and trade below a short-term support trend line at 0.7870.
Australia’s Consumer Inflation Expectation
Today in Australia, the Consumer Inflation Expectation for August 2017 was released by the Melbourne Institute. The market was positioned for no major change from the last increase of 4.4% in August 2017.
The actual result was below the forecast, as the expectation came in at 4.2%, less than the last 4.4%. The report added that:
In August, the weighted proportion of respondents (excluding the ‘don’t know’ category) expecting the inflation rate to fall within the 0-5 per cent range increased by 1.2 percentage points to 67.6 per cent. The weighted mean of responses within this range was unchanged at 2.5 per cent.
Overall, the AUDUSD pair is likely to extend declines and it could even trade below the 0.7850 support area in the near term.
