AUDUSD – What’s Holding Aussie Dollar From Breaking 0.7600?
Aayush Jindal
Key Highlights
The Aussie Dollar recent upside attempt failed near the 100 simple moving average (H4) at 0.7585.
There is a crucial bearish trend line with resistance at 0.7575 formed on the 4-hours chart of AUDUSD, acting as a hurdle.
Today in Australia, the Consumer Price Index for Q1 2017 released by the RBA and republished by the Australian Bureau of Statistics posted an increase of 2.1%.
The Quarterly change in the Consumer Price Index was 0.5%, compared with the +0.6% forecast.
AUDUSD Technical Analysis
The Aussie Dollar struggle to move past 0.7600 continued against the US Dollar. The AUDUSD pair is facing a major hurdle near 0.7580-0.7600, and it won’t be easy for buyers to clear it.The pair failed on 2-3 occasions near the 100 simple moving average (H4) at 0.7610 and 0.7585. There is also a crucial bearish trend line with resistance at 0.7575 formed on the 4-hours chart.Both the trend line and 100 SMA are preventing gains in AUDUSD above 0.7600. As long as the pair is below these, there can be more declines towards 0.7500.The most important support on the downside is near 0.7470, which is the last swing low.
Australian Consumer Price Index
Earlier during the Asian session, the Australian Consumer Price Index for Q1 2017 was released by the RBA and republished by the Australian Bureau of Statistics. The market was positioned for the CPI to increase by 2.2% in Q1 2017, compared with Q1 2016.The actual result was on the lower side, as the CPI rose 2.1%. Even the Quarterly change was disappointing, as the CPI increased 0.5%, compared with the +0.6% forecast.The report stated that the “most significant price rises this quarter are automotive fuel (+5.7 per cent), medical and hospital services (+1.6 per cent) and new dwelling purchase by owner-occupiers (+1.0 per cent). These rises are partially offset by falls in Furnishings, household equipment and services (-1.0 per cent) and Recreation and culture (-0.7 per cent)”.Overall, there was hardly anything for the Aussie Dollar, which means AUDUSD may continue to move down towards 0.7470 in the near term.
Economic Releases to Watch Today
Swiss – US Consumption Indicator March 2017 – Forecast 1.2, versus previous 1.5.
France Consumer Confidence for April 2017 - Forecast 100, versus 100 previous.
Canadian Retail Sales Feb 2017 (MoM) – Forecast 0%, versus +2.2% previous.
Canadian Retail Sales ex Autos Feb 2017 (MoM) – Forecast -0.2%, versus +1.7% previous.
The pair failed on 2-3 occasions near the 100 simple moving average (H4) at 0.7610 and 0.7585. There is also a crucial bearish trend line with resistance at 0.7575 formed on the 4-hours chart.Both the trend line and 100 SMA are preventing gains in AUDUSD above 0.7600. As long as the pair is below these, there can be more declines towards 0.7500.The most important support on the downside is near 0.7470, which is the last swing low.
The report stated that the “most significant price rises this quarter are automotive fuel (+5.7 per cent), medical and hospital services (+1.6 per cent) and new dwelling purchase by owner-occupiers (+1.0 per cent). These rises are partially offset by falls in Furnishings, household equipment and services (-1.0 per cent) and Recreation and culture (-0.7 per cent)”.Overall, there was hardly anything for the Aussie Dollar, which means AUDUSD may continue to move down towards 0.7470 in the near term.