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Dec 10, 2016

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Market Analysis

Home » Featured » AUDUSD Setting Up For a Move higher?

AUDUSD Setting Up For a Move higher?

Posted by FXTimes in Featured - December 9th, 2015 3:29 pm GMT

Euro EURAUD aussie dollar

Key Points

  • Aussie Dollar found support today against the US Dollar after the Chinese CPI came above the forecast.
  • Chinese Consumer Price Index published by the National Bureau of Statistics of China registered a rise of 1.5% in November 2015, compared with the forecast of 1.4%.
  • Chinese Producer Price Index posted a reading of -5.9%, as per the forecast.
  • AUDUSD traded higher and even cleared a major bearish trend line on the hourly chart.

Technical Analysis

The AUDUSD pair recently traded below a major support area of 0.7200, but managed to gain bids around 0.7170. The pair is under a correction phase in which it cleared a major bearish trend line on the hourly chart.

AUDUSD

Moreover, the 23.6% Fib retracement level of the last drop from the 0.7387 high to 0.7175 low was also broken. In short, there are many positive signs for buyers that may take the pair higher in the near term.

The hourly RSI is above the 50 level, which may encourage buyers and push the pair higher moving ahead.

Chinese CPI

Earlier today, during the Asian session, there was a major release in China, as the Consumer Price Index report was published by the National Bureau of Statistics of China. It helps in a measure of retail price variations within a representative basket of goods and services. The forecast was slated for an increase of 1.4% in the CPI in November 2015, compared November 2014. The result was encouraging with the Chinese CPI rising by 1.5%.

Looking at the monthly change, the outcome was again positive, as there no change in the CPI whereas the market was expecting a decline of 0.1%.

The AUDUSD pair took the advantage of the report and traded higher. It looks set for more gains if buyers remain in control.

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