AUD/USD – Aussie Dollar Looking To Extend Gains Vs US Dollar
Aayush Jindal
Key Highlights
The Aussie Dollar moved above a major resistance of 0.7510-00 recently against the US Dollar.
The AUD/USD pair broke a short-term bearish trend line at 0.7530 on the 4-hours chart to ignite an upside move.
Today in Australia, the National Australia Bank Business Confidence for May 2017 came in at 7, down from 13.
Today, the US Producer Price Index for May 2017 will be released by the Bureau of Labor statistics, Department of Labor, which is forecasted to remain flat at 0% (MoM).
AUDUSD Technical Analysis
The Aussie Dollar moved higher this past week and broke a major resistance at 0.7510-00 against the US Dollar. The AUD/USD is now well-supported above 0.7500 and looking to extend gains.The pair traded as high as 0.7566 recently from where a correction wave was initiated. It moved down, and tested the 23.6% Fib retracement level of the last wave from the 0.7371 low to 0.7566 high at 0.7520.Looking at the 4-hour chart, it seems like the pair is well bid above 0.7500. It also cleared a short-term bearish trend line at 0.7530. If the recent trend line break is real, the pair may soon retest 0.7560. Above 0.7560, the pair could extend gains towards 0.7600.
National Australia Bank Business Confidence
Today in Australia, the National Australia Bank Business Confidence for May 2017 was released. The market was aligned for a minor increase from the last reading of 13.The actual result on the lower side, as the Business Confidence Index declined to 7. On the other hand, the NAB´s Business Conditions came in at 12.Overall, the result was mixed, but there no major negative impact on AUD/USD, and it looks set for gains above 0.7560.
Economic Releases to Watch Today
UK Retail Price Index May 2017 (YoY) – Forecast +3.5%, versus +3.5% previous.
UK Producer Price Index May 2017 (YoY) – Forecast +3.6%, versus +3.6% previous.
UK Consumer Price Index May 2017 (YoY) – Forecast +2.7%, versus +2.7% previous.
UK Core Consumer Price Index May 2017 (YoY) – Forecast +2.4%, versus +2.4% previous.
German ZEW Business Economic Sentiment Index for June 2017 – Forecast 21.5, versus 20.6 previous.
German Current Situation Index June 2017 - Forecast 84.9, versus 83.9 previous.
US Producer Price Index May 2017 (YoY) – Forecast +2.4%, versus +2.5% previous.
US Producer Price Index May 2017 (MoM) – Forecast 0%, versus +0.5% previous.
The pair traded as high as 0.7566 recently from where a correction wave was initiated. It moved down, and tested the 23.6% Fib retracement level of the last wave from the 0.7371 low to 0.7566 high at 0.7520.Looking at the 4-hour chart, it seems like the pair is well bid above 0.7500. It also cleared a short-term bearish trend line at 0.7530. If the recent trend line break is real, the pair may soon retest 0.7560. Above 0.7560, the pair could extend gains towards 0.7600.