Key Points
- The Aussie Dollar after a sharp decline found support near 0.7570 against the US Dollar.
- There was a break above a major bearish trend line with resistance at 0.7588 on the hourly chart of AUDUSD.
- Recently in Australia, the New Motor Vehicle Sales for Oct 2017 was released by the Australian Bureau of Statistics.
- The outcome was above the forecast of +0.5% as there was a rise in sales by 1% (YoY).
AUDUSD Technical Analysis
The Aussie Dollar was in a major downtrend and traded below the 0.7650 and 0.7600 support levels against the US Dollar. The AUDUSD pair even traded below 21 hourly simple moving average, but later found support near 0.7570.
The pair started an upside move and traded above the 23.6% Fib retracement level of the last decline from the 0.7650 high to 0.7570 low. Moreover, there was a break above a major bearish trend line with resistance at 0.7588 on the hourly chart.
The pair is now above the 21 hourly SMA and is currently finding sellers near the 50% Fib retracement level of the last decline from the 0.7650 high to 0.7570 low. A break above the 0.7610 level would open the doors for more gains in the near term.
Australian New Motor Vehicle Sales
Recently in Australia, the New Motor Vehicle Sales for Oct 2017 was released by the Australian Bureau of Statistics. The market was positioned for the New Motor Vehicle Sales for Oct 2017 to increase by around 0.5% compared with the same month a year ago.
The actual result was above the forecast of +0.5% as there was a rise in sales by 1%. Looking at the monthly change, there was no change in the sales in Oct 2017 compared with the last decline of 0.6% (revised).
Overall, the AUDUSD pair is trading with a positive bias and it might trade above 0.7610 in the near term.
