AUDUSD - Aussie Dollar Broke Crucial Support Vs US Dollar
Aayush Jindal
Key Highlights
The Aussie dollar remained below 0.7700 against the US Dollar, and broke 0.7670.
The AUDUSD pair moved below a monster support area at 0.7670, formed with two bullish trend lines on the 4-hours chart.
Today in Australia, the Gross Domestic Product for Q4 2016 released by the Australian Bureau of Statistics posted an increase of 1.1%.
The yearly change in the GDP was 2.4%, better than the forecast of 1.9%.
AUDUSD Technical Analysis
The Aussie dollar struggled to trade above 0.7700 against the US Dollar, and it looks like the AUDUSD pair settled below a crucial juncture with support at 0.7670.There was a monster support confluence area formed near 0.7670. There were two bullish trend lines at 0.7665 on the 4-hours chart. Plus, the 100 simple moving average was aligned with the trend lines at 0.7670.The highlighted support area clearly was very important. A break and close below 0.7670 has opened the doors for further declines in AUDUSD. The same broken support at 0.7670 may now act as a resistance in the short term.
Australia’s Gross Domestic Product Q4 2016
Today in Australia, the Gross Domestic Product for Q4 2016 was released by the Australian Bureau of Statistics. The market was aligned for the total value of all goods and services produced by Australia to increase by 0.7% in Q4 2016, compared with the previous quarter.However, the result was impressive, as there was a rise of 1.1%. The yearly change in the GDP was above the forecast, and came in at 2.4%. The report added that “Household final consumption expenditure contributed 0.5 percentage points and public capital formation contributed 0.3 percentage points to growth.”After the result, the AUDUSD pair was seen trading higher, but it would be interesting to see if it can overcome the broken support (now resistance) at 0.7670.
Other Economic Releases for Upcoming Sessions
Euro Zone Manufacturing PMI for Feb 2017 – Forecast 55.5, versus 55.5 previous.
Germany’s Manufacturing PMI for Feb 2017 - Forecast 57, versus 57 previous.
UK’s Manufacturing PMI for Feb 2017 – Forecast 55.5, versus 55.9 previous.
US Personal Income for Jan 2017 - Forecast +0.3% (MoM) versus +0.3% previous.
US ISM Manufacturing Index for Feb 2017 – Forecast 55.7, versus 56 previous.
BoC Interest Rate Decision - Forecast 0.5%, versus 0.5% previous.
There was a monster support confluence area formed near 0.7670. There were two bullish trend lines at 0.7665 on the 4-hours chart. Plus, the 100 simple moving average was aligned with the trend lines at 0.7670.The highlighted support area clearly was very important. A break and close below 0.7670 has opened the doors for further declines in AUDUSD. The same broken support at 0.7670 may now act as a resistance in the short term.
However, the result was impressive, as there was a rise of 1.1%. The yearly change in the GDP was above the forecast, and came in at 2.4%. The report added that “Household final consumption expenditure contributed 0.5 percentage points and public capital formation contributed 0.3 percentage points to growth.”After the result, the AUDUSD pair was seen trading higher, but it would be interesting to see if it can overcome the broken support (now resistance) at 0.7670.