AUDUSD – How RBA Can Impact the Aussie Dollar Trend?
Aayush Jindal
Key Highlights
The Aussie dollar traded higher but failed twice near 0.7696 against the US Dollar.
There are a couple of bullish trend lines on the 4-hours chart of AUDUSD with supports at 0.7620 and 0.7580.
Today, the RBA Interest Rate Decision will be announced by the Reserve Bank of Australia, and the central bank is expected to keep rates at 1.5%.
Earlier today, the HIA/AiG Performance of Construction Index, released by the Australian Industry Group and the Housing Industry Association posted a rise from 47 to 47.7 in Jan 2017.
AUDUSD Technical Analysis
The Aussie dollar enjoyed a decent upside ride against the US Dollar this past week and traded above 0.7650. However, the AUDUSD pair failed twice near 0.7696, putting it at a risk of a downside move.The pair is likely forming a double top pattern near 0.7700, which means there is a chance of a downside move. However, there are a couple of bullish trend lines on the 4-hours chart, which might provide support near 0.7620 and 0.7580.Moreover, the 50% Fib retracement level of the last leg from the 0.7554 low to 0.7696 high is at 0.7625, which might also provide bids. Overall, the pair remains at a risk, but has many supports on the downside.
RBA Interest Rate Decision
Today, there is a major economic event in Australia, as RBA Interest Rate Decision will be announced by the Reserve Bank of Australia.The central bank is expected to keep the interest rates at 1.5%. However, the RBA statement might make an impact. Any increased dovishness could push the Aussie dollar down towards 0.7600 vs the US Dollar.
HIA/AiG Performance of Construction Index
Earlier today, the HIA/AiG Performance of Construction Index was released by the Australian Industry Group and the Housing Industry Association. It is an important indicator in the construction market, and was forecasted to post a minor rise from the last reading of 47 in Jan 2017.However, the result was not as the market expected, as the HIA/AiG Performance of Construction Index posted a minor rise to 47.7 in Jan 2017. The report added that this “was an increase of 0.7 points from December, indicating a slight moderation in the rate of decline for the industry as a whole“.
The pair is likely forming a double top pattern near 0.7700, which means there is a chance of a downside move. However, there are a couple of bullish trend lines on the 4-hours chart, which might provide support near 0.7620 and 0.7580.Moreover, the 50% Fib retracement level of the last leg from the 0.7554 low to 0.7696 high is at 0.7625, which might also provide bids. Overall, the pair remains at a risk, but has many supports on the downside.
However, the result was not as the market expected, as the HIA/AiG Performance of Construction Index posted a minor rise to 47.7 in Jan 2017. The report added that this “was an increase of 0.7 points from December, indicating a slight moderation in the rate of decline for the industry as a whole“.