Key Points
- The Aussie Dollar tumbled recently vs the US Dollar, and may remain under a bearish pressure.
- There is a bearish trend line formed on the hourly chart of the AUDUSD pair, which is acting as a barrier for the Aussie bulls.
- Australian HIA New Home Sales released by the Housing Industry Association posted a decline of 4.7% in April 2016.
- Australia’s Company Gross Operating Profits released by the Australian Bureau of Statistics posted a decline of 4.7% in Q1 2016, which was disappointing.
Technical Analysis
The Aussie dollar moved down recently vs the US Dollar and traded as low as 0.7151. The AUDUSD pair is currently attempting to recover, but facing as a resistance in the form of a bearish trend line on the hourly chart of the AUDUSD pair.
Moreover, the 100, 200 and 50 hourly simple moving average are also positioned above the trend line resistance to prevent the upside move.
On the downside, the 0.7160 level may be seen as a support area for the Aussie dollar buyers in the short term, followed by the last swing low of 0.7150.
Australian HIA New Home Sales
Today in Australia, the HIA New Home Sales, which presents the number of new home sales in Australia. It indicates the housing market condition released by the Housing Industry Association. The outcome was very disappointing, as there was a decline of 4.7% in April 2016.
Moreover, the Company Gross Operating Profits, which measures the total amount of pre-tax profits earned from business activities, excluding interest expense on borrowing and valuation adjustments was released by the Australian Bureau of Statistics. The outcome was again disappointing, as there was a decline of 4.7% in Q1 2016.
Overall, there is hardly any reason for the Aussie dollar to move higher, so we may witness more declines.
