Encouraging AIG Performance Index Fails To Lift AUD
Aayush Jindal
Key Highlights
Australian AIG performance of the manufacturing Index released by the Australian Industry Group increased from 46.9 to 49.0 in January 2015.
Australian TD Securities Inflation was also released by The University of Melbourne - Faculty of Economics and Commerce, which registered an increase of 0.1% in January.
AUDUSD failed to trade higher and struggled to break the 0.7800 resistance area.
Australian AIG Performance Mfg. IndexEarlier during the Asian session, there was an important release lined in Australia. The TD Securities Inflation was also was released by The University of Melbourne - Faculty of Economics and Commerce. The outcome was on the positive side, as the AIG performance index increased by 2.1 points to 49.0 points in January 2015 on the seasonally adjusted basis. However, it was below the 50 level, which means contraction. On the other hand, the report highlighted that stable conditions across the manufacturing sector were noted this past month. The key point was the fact that the manufacturing exports expanded for the second month, and manufacturers increased their stock levels in January. Moreover, the input prices declined by 2.9 points to 67.3 points. The most important one was the food, beverages and tobacco sub-sector’s index, which rose by 2.5 points to 62.9.Technical AnalysisThe AUDUSD pair was not affected much after the release, but in fact was seen struggling around the 0.7800 resistance area. There is a contracting triangle forming on the hourly chart, which might act as a catalyst for the pair in the near term. Moreover, the triangle resistance trend line is also coinciding with the 23.6% fib retracement level of the last drop from the 0.7895 high to 0.7719 low. Moreover, the 55 hourly moving average is also sitting just above the triangle. So, there is a major barrier around the 0.7800 area.On the downside, the triangle support is around 0.7740, followed by the last low of 0.7720.US ISM Manufacturing PMILater during the NY session, the US Institute for Supply Management (ISM) Manufacturing Index will be released. The forecast is slated for no change in the index and is expected to stay at 55.5 in January 2015. Moreover, the US Manufacturing Purchasing Managers Index (PMI) will also be published by the Markit Economics. Let us see how the outcome affects the US and Aussie dollar moving ahead.
Technical AnalysisThe AUDUSD pair was not affected much after the release, but in fact was seen struggling around the 0.7800 resistance area. There is a contracting triangle forming on the hourly chart, which might act as a catalyst for the pair in the near term. Moreover, the triangle resistance trend line is also coinciding with the 23.6% fib retracement level of the last drop from the 0.7895 high to 0.7719 low. Moreover, the 55 hourly moving average is also sitting just above the triangle. So, there is a major barrier around the 0.7800 area.
On the downside, the triangle support is around 0.7740, followed by the last low of 0.7720.US ISM Manufacturing PMILater during the NY session, the US Institute for Supply Management (ISM) Manufacturing Index will be released. The forecast is slated for no change in the index and is expected to stay at 55.5 in January 2015. Moreover, the US Manufacturing Purchasing Managers Index (PMI) will also be published by the Markit Economics. Let us see how the outcome affects the US and Aussie dollar moving ahead.
Technical AnalysisThe AUDUSD pair was not affected much after the release, but in fact was seen struggling around the 0.7800 resistance area. There is a contracting triangle forming on the hourly chart, which might act as a catalyst for the pair in the near term. Moreover, the triangle resistance trend line is also coinciding with the 23.6% fib retracement level of the last drop from the 0.7895 high to 0.7719 low. Moreover, the 55 hourly moving average is also sitting just above the triangle. So, there is a major barrier around the 0.7800 area.
On the downside, the triangle support is around 0.7740, followed by the last low of 0.7720.US ISM Manufacturing PMILater during the NY session, the US Institute for Supply Management (ISM) Manufacturing Index will be released. The forecast is slated for no change in the index and is expected to stay at 55.5 in January 2015. Moreover, the US Manufacturing Purchasing Managers Index (PMI) will also be published by the Markit Economics. Let us see how the outcome affects the US and Aussie dollar moving ahead.