Key Points
- The Aussie dollar declined heavily recently against the US Dollar and looks set for more losses.
- There was a major support area and a bullish trend line on the hourly chart of the AUDUSD pair, which was broken during the recent downsides.
- Today in Australia, the HIA New Home Sales report was released by the Housing Industry Association.
- The outcome was disappointing, as there was a decline of 9.7%, compared with the last increase of 8.2%.
AUDUSD Technical Analysis
The Aussie dollar struggled a lot during the recent times against the US Dollar and traded down towards 0.7520. As mentioned the AUDUSD pair broke a major support area and a bullish trend line on the hourly chart.
The recent break looks very powerful, and suggests that the pair may continue to move down. If the pair corrects from the current levels, then 38.2% Fib retracement level of the last drop from the 0.7688 high to 0.7520 low may act as a support.
One may consider selling AUDUSD on rallies around the 0.7580-0.7600 levels.
Australian HIA New Home Sales
Today during the Asian session, the HIA New Home Sales figure, which presents the number of new home sales in Australia was released by the Housing Industry Association. The market was not expecting any major decline in sales.
However, the result was disappointing, as there was a decrease of 9.7%, compared with the last increase of 8.2%. In the US today, the Personal Income report was released by the Bureau of Economic Analysis, Department of Commerce.
The outcome was in line with the forecast, as the Personal Income increased by 0.4% in July 2016, compared with the previous month.
Overall, the Aussie dollar may correct a few pips higher against the US Dollar, but remains under a bearish pressure.
