AUDUSD – Aussie Dollar Struggle To Continue Vs US Dollar
Aayush Jindal
Key Highlights
The Aussie Dollar remained under pressure with resistance at 0.7550 and 0.7460 against the US Dollar.
There is a monster bearish trend line resistance formed at 0.7540-50 on the 4-hours chart of AUDUSD.
Today in Australia, the trade balance for March 2017 released by the Australian Bureau of Statistics posted a trade surplus of 3,107M.
Today in the US, the Trade Balance for March 2017 is lined up, and the market is expecting a deficit of $-44.4B, compared with the last $-43.6B.
AUDUSD Technical Analysis
The Aussie Dollar failed on many occasions to remain above 0.7550 against the US Dollar. As a result, the AUDUSD pair is now at risk of a break below 0.7440.The pair recently failed near a monster bearish trend line resistance at 0.7540-50 on the 4-hours chart. The 100 simple moving average (H4), currently at 0.7530 also played its part well.There was a downside move initiated after AUDUSD failed to break 0.7540-50. It moved down sharply and currently trading near the 1.236 extension of the last wave from the 0.7440 low to 0.7556 high.If it continues to move down, there can be a break below 0.7400 with a chance of AUDUSD testing 0.7365.
Australia’s Trade Balance
Recently in the Australia, the trade balance for March 2017 was released by the Australian Bureau of Statistics. The market was expecting a trade surplus of around 2,800M, compared with the last 3,574M.The actual result was a bit better, as the trade surplus was 3,107M. Imports of goods and services increased 5% in March 2017, and exports rose 2%. However, the Aussie Dollar was not impressed and moved down below 0.7440.The report stated that “In seasonally adjusted terms, goods and services credits rose $776m (2%) to $33,343m. Non-monetary gold rose $443m (32%), rural goods rose $271m (7%) and non-rural goods rose $19m. Net exports of goods under merchanting fell $1m (2%). Services credits rose $45m (1%)”.
Economic Releases to Watch Today
Germany’s Services PMI for April 2017 - Forecast 54.7, versus 54.7 previous.
France Services PMI April 2017 – Forecast 57.4, versus 57.4 previous.
Spanish Services PMI for April 2017 – Forecast 57.4, versus 58.0 previous.
Euro Zone Services PMI for April 2017 – Forecast 56.2, versus 56.2 previous.
UK Services PMI for April 2017 – Forecast 54.5, versus 55.0 previous.
US Initial Jobless Claims - Forecast 243K, versus 244K previous.
US Factory Orders March 2017 (MoM) - Forecast +0.4%, versus +1% previous.
US Trade Balance March 2017 - Forecast $-44.4B, versus $-43.6B previous.
The pair recently failed near a monster bearish trend line resistance at 0.7540-50 on the 4-hours chart. The 100 simple moving average (H4), currently at 0.7530 also played its part well.There was a downside move initiated after AUDUSD failed to break 0.7540-50. It moved down sharply and currently trading near the 1.236 extension of the last wave from the 0.7440 low to 0.7556 high.If it continues to move down, there can be a break below 0.7400 with a chance of AUDUSD testing 0.7365.
The actual result was a bit better, as the trade surplus was 3,107M. Imports of goods and services increased 5% in March 2017, and exports rose 2%. However, the Aussie Dollar was not impressed and moved down below 0.7440.The report stated that “In seasonally adjusted terms, goods and services credits rose $776m (2%) to $33,343m. Non-monetary gold rose $443m (32%), rural goods rose $271m (7%) and non-rural goods rose $19m. Net exports of goods under merchanting fell $1m (2%). Services credits rose $45m (1%)”.