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AUDUSD – Can Aussie Dollar Overcome Selling Pressure Vs US Dollar?

Key Points

  • The Aussie Dollar recently traded lower and tested the 0.7560 support zone against the US Dollar.
  • There are two major bearish trend lines with resistance at 0.7640 forming on the hourly chart of AUDUSD.
  • Today in Australia, the Home Loans figure for May 2017 was released by the Australian Bureau of Statistics.
  • The outcome was below the forecast, as there was an increase of 1%, less than the forecast of 1.5%.

AUDUSD Technical Analysis

The Aussie Dollar started a downside move from the 0.7690-80 swing high against the US Dollar. The AUDUSD pair traded lower and broke the 0.7650 support to trade as low 0.7577 from where a recovery was initiated.

AUDUSD Technical Analysis

The pair is currently correcting higher and already moved above the 23.6% Fib retracement level of the last decline from the 0.7688 high to 0.7577 low and 21 hourly simple moving average.

However, the pair is facing hurdles near two major bearish trend lines with resistance at 0.7640 on the hourly chart. The 50% Fib retracement level of the last decline from the 0.7688 high to 0.7577 low is also near 0.7632. So, the 0.7640-50 levels are likely to act as a strong offer zone in the short term.

Australia’s Home Loans

Today in Australia, the Home Loans figure for May 2017 was released by the Australian Bureau of Statistics. The market was positioned for the Home Loans to increase by 1.5%, compared with the last decrease of 1.9%.

The actual result was below the forecast, as there was an increase of 1%, less than the forecast of 1.5%. The report added that:

The trend estimate for the total value of dwelling finance commitments excluding alterations and additions fell 0.3%. Owner occupied housing commitments rose 0.4%, while investment housing commitments fell 1.5%.

Overall, the AUDUSD pair may continue to trade higher, but it won’t be easy for it to break 0.7640 in the near term.

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