Key Points
- The Aussie Dollar made a nice upside move and traded above 0.7900 against the US Dollar.
- Before the mentioned recovery, the AUDUSD pair broke a bullish trend line with support at 0.7950 on the hourly chart.
- Today in Australia, the AiG performance of the Mfg Index for August 2017 was released by the Australian Industry Group.
- The outcome was above the forecast of 58.0, as there was a rise from the last reading of 56.0 to 59.8.
AUDUSD Technical Analysis
The Aussie Dollar after trading as high as 0.7996 made a top against the US Dollar. During the downside move, the AUDUSD pair broke a bullish trend line with support at 0.7950 on the hourly chart.
Later, the pair traded as low as 0.7871 from where it started a recovery. It moved above the 50% Fib retracement level of the last drop from the 0.7996 high to 0.7871 low and the 21 hourly simple moving average.
At the moment, the pair is struggling to clear the 0.7950-60 resistance area and the 61.8% Fib retracement level of the last drop from the 0.7996 high to 0.7871 low. A proper close above 0.7960 is needed to a retest of 0.7996 in the near term.
AiG performance of the Mfg Index
Today in Australia, the AiG performance of the Mfg Index for August 2017 was released by the Australian Industry Group. The market was positioned for a rise from the last reading of 56 to 58 in August 2017.
The actual result was above the forecast of 58.0, as there was a rise from the last reading of 56.0 to 59.8. The report stated that:
This was the highest monthly result for the Australian PMI® since 2002. It marked an eleventh consecutive month of expansion for the Australian PMI® and the longest consecutive run of expansion since 2007 in the seasonally adjusted series.
Overall, the AUDUSD pair is likely to continue higher and could even test the 0.8000 handle in the near term.
