Key Points
- Aussie dollar recently traded higher versus the US Dollar, and broke a bearish trend line formed on the hourly chart.
- However, the AUDUSD pair is currently facing a resistance near the 100 and 200 hourly simple moving averages.
- In the US, Personal spending, released by Bureau of Economic Analysis, Department of Commerce posted a rise of 0.4% in May 2016.
- The Personal Income on the other hand posted a rise of 0.2% in May 2016, less than the forecast of 0.3%.
Technical Analysis
The Aussie dollar recently managed to recover against the US Dollar after trading as low as 0.7323. The AUDUSD pair moved higher, and during the recent upside move broke a bearish trend line formed on the hourly chart.
However, there is a major resistance faced by the pair at the moment around the 100 and 200 hourly simple moving averages.
A failure to close above the 200 hourly SMA may call for a false break, and the pair may move down once again.
US Personal Spending and Income
Today in the US, the Personal Income, which measures the total income received by individuals, from all sources was released by the Bureau of Economic Analysis, Department of Commerce. The market was expecting a rise of 0.3% in May 2016, but it came in at 0.2%. The report added that “Personal income increased $37.1 billion, or 0.2 percent, and disposable personal income (DPI) increased $33.9 billion, or 0.2 percent“.
Moreover, the US Personal Spending Personal spending, which measures purchases of goods and services by households and by nonprofit institutions that serve households from private business post an increase of 0.4% in May 2016, just as the market expected.
Overall, the report was positive and may put some bearish pressure on the AUDUSD pair in the short term.
