Key Points
- The Aussie Dollar surged higher recently and broke a major hurdle at 0.7960-70 against the US Dollar.
- There is a crucial bullish trend line with support at 0.7995 forming on the hourly chart of AUDUSD.
- Today in Australia, the Import Price Index for Q2 2017 was released by the Australian Bureau of Statistics.
- The outcome was below the forecast, as there was a decline of 0.1% (QoQ).
AUDUSD Technical Analysis
The Aussie Dollar was in a solid uptrend and started rising from the 0.7880 support area against the US Dollar. The AUDUSD pair rocketed higher and broke a major resistance area near 0.7960-70 and the 21 hourly simple moving average.
The pair traded as high as 0.8066 recently, where a connecting resistance trend line stopped gains. There is a chance that the pair may correct a few pips lower towards the 23.6% Fib retracement level of the last wave from the 0.7878 low to 0.8066 high.
There is also a crucial bullish trend line with support at 0.7995 forming on the hourly chart. Overall, the pair remains buy on dips near the 0.8020 and 0.8000 support levels.
Australia’s Import Price Index
Today in Australia, the Import Price Index for Q2 2017 was released by the Australian Bureau of Statistics. The market was positioned for an increase of 0.7% compared with the previous quarter.
The actual result was below the forecast, as there was a decline of 0.1%. The Export Price on the other hand, posted a decline of 5.7% (QoQ), less than the forecast of -6.3%. The report added that:
The fall was driven by lower prices paid for Mineral fuels, lubricants, and related materials (-4.8%) and Machinery and transport equipment (-0.3%). Offsetting these price falls were rises in Manufactured goods classified chiefly by material (+1.9%); Chemicals and related products, n.e.s. (+1.7%); and Miscellaneous manufactured articles (+1.0%).
Overall, the AUDUSD may correct a few pips lower, but likely to gain momentum for a move above 0.8060 in the near term.
