Key Points
- The Aussie dollar traded below the 0.7600 support area recently against the US Dollar.
- There was a major descending channel break with support at 0.7620 on the hourly chart of AUDUSD.
- Today, the Australian AiG Performance of Services Index for Jan 2017 was released by the Australian Industry Group.
- The result was below the market expectation, as there was a decline from the last reading of 54.5 to 49.0.
AUDUSD Technical Analysis
The Aussie dollar started a downtrend from the 0.7745 high against the US Dollar, and moved down by more than 100 pips. During the downside move, the AUDUSD pair cleared a major descending channel break with support at 0.7620 on the hourly chart.
It traded as low as 0.7543 from where it started a minor correction. However, the current correction wave is likely to face resistance near the 23.6% Fib retracement level of the last drop from the 0.7686 high to 0.7543 low at 0.7577.
On the downside, a break of 0.7543 might open the doors for a new low in AUDUSD towards 0.7520.
Australian AiG Performance of Services Index
Today in Australia, the AiG Performance of Services Index for Jan 2017 was released by the Australian Industry Group. The market was not expecting any major decline in the index in Jan 2017 from the last reading of 54.5.
The outcome was below the market expectation, as there was a decline from the last reading of 54.5 to 49.0. The report stated that “Only one of the five activity sub-indexes in the Australian PSI® was above 50 points and indicating expansion in February (seasonally adjusted data). Supplier deliveries continued to grow (53.7 points), but at a slower pace than in January“.
Overall, the Aussie dollar has hardly any reason to move higher, which is why the AUDUSD pair may decline towards 0.7500 or 0.7520.
