- Aussie Dollar rocketed higher this week against the US Dollar, and looks set for more gains.
- AUDUSD is forming a solid bullish structure on the daily chart, suggesting an upside reaction moving ahead.
- RBA Interest Rate Decision was announced by the Reserve Bank of Australia today in which the central bank kept the interest rates unchanged.
- Australian Building Permits released by the Australian Bureau of Statistics posted an increase of 3.9% in October 2015, compared with the last revised rise of 2.3%.
The AUDUSD pair recovered well after trading as low as 0.7012 where it found buyers. There is a support trend line formed on the daily chart, which is acting as a catalyst for the upside move. The pair has settled above the 100 and 50-day simple moving average, which is a positive sign.
A break above the last swing high of 0.7299 may take the pair towards the 0.7350 resistance area. The daily RSI is well above the 50 level, which is a positive sign for buyers in the near term.
On the downside, the trend line must hold if the pair has to continue trading higher.
Australian Building Permits
Australian Building Permits, which shows the number of permits for new construction projects and implies the movement of corporate investments was released by the Australian Bureau of Statistics today. The market was expecting a decline of 2.3% in October 2015. However, the outcome was above the forecast, as there was a rise in Building permits by 3.9%.
In terms of the yearly change, there was an increase of 12.3% in October 2015, compared with the same month a year ago.
Overall, the AUDUSD pair looks set for more gains as long as the trend line stays intact.