- Aussie Dollar is trading higher against the US Dollar, and looks set for more gains.
- The AUDUSD pair likely forming a repeat pattern of the previous inverse head and shoulders pattern, which could take the pair higher.
- Australian Import Price Index was published by the Australian Bureau of Statistics earlier today, which came in at -0.3% for Q4 2015.
- Australian Export Price Index was also down, and registered a decline of 5.4% in Q4 2015.
The AUDUSD pair once formed an inverse head and shoulders pattern on the hourly chart, and it looks like the same pattern is about to repeat the same pattern (as can be seen in the chart). There is a resistance trend line formed on the hourly chart that may act as a hurdle and stall gains.
There is a chance of a minor dip before the AUDUSD pair starts to trade higher once again. A break above the trend line is needed for a move towards 0.7120.
On the downside, the 50 hourly simple moving average is an important support for AUDUSD in the short term.
Australian Import and Export Price Index
There was hardly any economic release in Australian today, and only the Import Price Index and the export price index report was published by the Australian Bureau of Statistics. The Import price index, which informs the changes in the price of imported products came in at -0.3% for Q4 2015.
And, the Export price index, which informs of the changes in the price of exports posted a decline of 5.4% in Q4 2015.
The AUDUSD pair is trading with a bullish tone, and if buyers remain in control, then a move towards the 0.7120 is possible in the short term.