Key Points
- The Aussie Dollar after moving towards the 0.7550 level found sellers and moved down.
- The AUDUSD pair broke two bullish trend lines with support at 0.7530 and 0.7525 on the hourly chart.
- Recently in Australia, the AiG Performance of Services Index for March 2017 was released by the Australian Industry Group.
- The result was above the forecast, as the AiG Performance of Services Index rose from 51.7 to 53.
AUDUSD Technical Analysis
The Aussie Dollar had a good run towards 0.7550 against the US Dollar until it faced resistance near the 0.7556 level. Later, the AUDUSD pair started moving lower, and broke two bullish trend lines with support at 0.7530 and 0.7525 on the hourly chart.
The pair also moved below the 38.2% Fib retracement level of the last wave from the 0.7448 low to 0.7556 high.
At the moment, the pair is finding support at 0.7500, and the 50% Fib retracement level of the last wave from the 0.7448 low to 0.7556 high. So, there is a chance of AUDUSD recovering towards 0.7525 before it moves down once again.
AiG Performance of Services Index
Recently in the Australia, the AiG Performance of Services Index for March 2017 was released by the Australian Industry Group. The forecast was lined up for no major change from the last reading of 51.7 in March 2017.
The result was above the forecast, as the AiG Performance of Services Index rose from 51.7 to 53. The report highlighted that “Three of the larger sub-sectors expanded in the Australian PSI® in April (trend data) with results above 50 points. Property and business services continued to grow strongly, rising half a point to 56.9 points. The Wholesale trade index fell by 0.6 points to 53.6 points, while Finance and insurance continued to grow but the pace of growth fell to 51.9 points”.
Overall, the AUDUSD has very less reasons to move up, which means it could trade lower towards 0.7480 in the near term.
