AUDUSD Upside Bias Remains Vulnerable Around 0.7720
Aayush Jindal
Key Highlights
Aussie dollar surged higher recently, but failed around a monster resistance to trade back lower in the near term.
Reserve Bank of Australia Governor Stevens spoke in front of the American Chamber of Commerce in Australia during the Asian session, which helped AUDUSD to hold the ground.
AUDUSD has a major resistance on the upside at 0.7720.
RBA Steven’s SpeechEarlier during the Asian session, the Reserve Bank of Australia Governor Stevens spoke in front of the American Chamber of Commerce in Australia. He pointed in his speech that business and consumer confidence getting less optimistic, which is a worrying sign in the near term.Moreover, he stated regarding the interest rates that there are talks of lowering it further moving ahead. This is largely expected by the forex market, and which is one of the reasons why the AUDUSD was under pressure recently.In the New Zealand Visitor Arrivals i.e. the number of visitors to New Zealand was released by the Statistics New Zealand. The outcome was higher when compared to the preceding gain of 3.4%. The New Zealand Visitor Arrivals increased by around 14% in February 2015, compared to the same month a year ago. Speaking about the release, the population statistics manager Vina Cullum mentioned that "the increase in visitor arrivals was influenced by the timing of Chinese New Year, which is a popular time for travel”.Technical AnalysisThe AUDUSD pair recently spiked above the 0.7800 resistance area after the fed interest rate decision. However, the pair failed to stay above the mentioned level. There is a bearish trend line formed on the 4-hour chart as well, which is acting as a hurdle for the pair. There was a false break noted above the same recently as well.The most important point is that the 100 and 200 simple moving average on the 4 hour chart is also around the highlighted trend lines. So, there is a major hurdle formed around the 0.7720-40 area where the Aussie dollar buyers might struggle if the AUDUSD pair moves higher from the current levels. .Canadian CPILater during the NY session, there is a major release in Canada, as the Consumer Price Index (CPI) will be published by the Statistics Canada. The market is expecting a rise of 1% in February 2015, compared to February 2014.
The most important point is that the 100 and 200 simple moving average on the 4 hour chart is also around the highlighted trend lines. So, there is a major hurdle formed around the 0.7720-40 area where the Aussie dollar buyers might struggle if the AUDUSD pair moves higher from the current levels. .Canadian CPILater during the NY session, there is a major release in Canada, as the Consumer Price Index (CPI) will be published by the Statistics Canada. The market is expecting a rise of 1% in February 2015, compared to February 2014.
The most important point is that the 100 and 200 simple moving average on the 4 hour chart is also around the highlighted trend lines. So, there is a major hurdle formed around the 0.7720-40 area where the Aussie dollar buyers might struggle if the AUDUSD pair moves higher from the current levels. .Canadian CPILater during the NY session, there is a major release in Canada, as the Consumer Price Index (CPI) will be published by the Statistics Canada. The market is expecting a rise of 1% in February 2015, compared to February 2014.