Key Points
- The Aussie dollar after trading as high as 0.7691 against the US Dollar started moving down.
- There is a contracting descending triangle pattern formed on the hourly chart of the AUDUSD pair, which may provide us the next break soon.
- The Australian Retail Sales report was released by the Australian Bureau of Statistics today.
- The market was expecting a rise of 0.2% in August 2016, but there was an increase of 0.4%.
AUDUSD Technical Analysis
The Aussie dollar after forming a high at 0.7691 against the US Dollar moved down, and traded below the 0.7640 support area. There is now a contracting descending triangle pattern formed on the hourly chart of the AUDUSD.
The highlighted pattern may provide us the next move in the pair. The chances of a downside move are more since the pair is also below the 21 hourly SMA.
One may consider trading with a break. So, that it is a safe bet and less risky.
Australian Retail Sales
Today in Australia, the Retail Sales, which is a survey of goods sold by retailers is based on a sampling of retail stores of different types and sizes was released by the Australian Bureau of Statistics.
The market was expecting was expecting a rise of 0.2% in August 2016, compared with the previous month. However, the result was above the forecast, as there was an increase of 0.4%. The report stated that “In seasonally adjusted terms, the largest rise was in department stores (3.5 per cent), which followed a fall in July of 5.8 per cent. There were also seasonally adjusted rises in cafes, restaurants and takeaway food services (1.2 per cent), food retailing (0.3 per cent) and household goods retailing (0.2 per cent)”.
Overall, the outcome was positive for the Aussie dollar, but we need to see which way the AUDUSD pair breaks in the short term.
