Key Points
- The Aussie Dollar after trading towards 0.7500-10 against the US Dollar found resistance and moved down.
- At the moment, the AUDUSD pair is trading near a bullish trend line with support at 0.7450 on the hourly chart.
- Today in Australia, the Construction Work Done for Q1 2017 was released by the Australian Bureau of Statistics.
- The result was below the forecast, as the Construction Work Done declined by 0.7%, more than the forecast of -0.2%.
AUDUSD Technical Analysis
The Aussie Dollar moved nicely towards 0.7500 against the US Dollar, and made a high at 0.7517 before finding resistance. Later, the AUDUSD pair moved down, and started a downside move breaking the 23.6% Fib retracement level of the last wave from the 0.7406 low to 0.7517 high.
Later, the pair extended the downside move, and broke the 0.7480 support. It also moved below the 50% Fib retracement level of the last wave from the 0.7406 low to 0.7517 high.
Currently, the pair is trading near a bullish trend line with support at 0.7450 on the hourly chart. A break below the trend line support or 0.7440 might call for further declines in the short term.
Australia’s Construction Work Done
Recently in Australia, the Construction Work Done for Q1 2017 was released by the Australian Bureau of Statistics. The market was positioned for a decline of 0.2% in Q1 2017, compared with the previous increase of 0.6% (revised).
The was below the forecast, as the Construction Work Done declined by 0.7%, more than the forecast of -0.2%. The report stated that the “trend estimate for total building work done fell 1.1% in the March quarter. The trend estimate for non-residential building work was flat and residential building work fell 1.7%.”
Overall, the AUDUSD pair remains at a risk of a break below 0.7440 in the near term.
