Key Points
- The Aussie dollar recently traded lower to test the 0.7580 support zone against the US Dollar.
- The AUDUSD pair started to recover, and managed to clear a couple of bearish trend lines formed on the hourly chart of AUDUSD.
- Today, the Australian Producer Price Index was released by the Australian Bureau of Statistics.
- The outcome was better than the forecast, as there was an increase of 0.3% in Q3 2016.
AUDUSD Technical Analysis
The Aussie dollar declined from the 0.7700 resistance, and tested the 0.7580 support area against the US Dollar. Later, the AUDUSD pair started a recovery, and broke a couple of bearish trend lines formed on the hourly chart.
However, the upside move had no momentum, and stopped near the 23.6% Fib retracement level of the last decline from the 0.7705 high to 0.7579 low.
The pair has once again started weakening, which means there is a chance of a retest of the recent low of 0.7579. The sellers may even attempt a break below it.
Australian Producer Price Index
Today in Australia, the Producer Price Index, which measures the average changes in prices in the Australian markets by producers of commodities was released by the Australian Bureau of Statistics.
The market was aligned for an increase of around 0.1% in Q3 2016, compared with the previous quarter. However, the result was better, as there was a rise of 0.3%. The report stated that it was “mainly due to rises in the prices received for other agriculture which includes bananas, beans and tomatoes (+8.3%), sheep, beef cattle and grain farming; and dairy cattle farming (+11.9%) and electricity supply, gas supply and water supply, sewerage and drainage services (+1.7%)”.
The result was positive, but it looks like the recent break in the AUDUSD pair has no momentum, which may result in a downside move.
