Key Points
- Aussie dollar after moving down against the US Dollar towards 0.7444 found support.
- Before the downside move, the AUDUSD pair broke a channel pattern formed on the hourly chart.
- Earlier today, the Australian Westpac Leading Index was released by the Melbourne Institute.
- The result was positive, as there was a rise of 0.2% in April 2016, compared with the last decline of -0.20%.
Technical Analysis
The Aussie dollar traded down during the Asian session today against the US Dollar and traded as low as 0.7444. There was a channel pattern break noted on the hourly chart of the AUDUSD pair, which may now act as a resistance.
Currently, the pair is trading near the 61.8% Fib retracement level of the last decline from the 0.7512 high to 0.7444 low. A break above it could take the pair towards the last high of 0.7512.
On the downside, the most important support is near the 50 hourly simple moving average.
Australian Westpac Leading Index
Today in Australia, the Westpac Leading Index, which tracks nine gauges of economic activity, including share prices and telephone installations, to provide an indication of how the economy will perform was released by the Melbourne Institute. The result was positive, as there was a rise of 0.2% in April 2016, compared with the last decline of -0.20%.
Today in the US, the Housing Price Index, which provides an estimated value of housing market conditions will be released by the Federal Housing Finance Agency. The outcome of the event may impact the US Dollar in the short term.
Overall, it looks like the AUDUSD pair may trade further higher in the near term, as long as it is above the 50 hourly SMA.
