- Australian Dollar traded down during the Asian session against the US dollar and tested the 0.7410 support area.
- There is a bullish trend line formed on the hourly chart of the AUDUSD pair, which prevented further losses.
- The AUDUSD pair is just above the 50 hourly simple moving average, which is acting as a support in the short term.
- In Australia, the National Australia Bank Business Confidence was released, which posted a reading of 3 in Feb 2016.
The Aussie dollar enjoyed a nice ride against the US dollar until it found sellers near the 0.7480 resistance area. The AUDUSD pair traded down and tested a bullish trend line formed on the hourly chart of the AUDUSD pair, which prevented further losses.
The pair is currently correcting higher, but may face sellers near the 50% Fib retracement level of the last drop from the 0.7484 high to 0.7411 low.
On the downside, a break below the highlighted trend line could call for a larger down move in the AUDUSD pair.
National Australia Bank Business Confidence
Today, the National Australia Bank Business Confidence, which is a survey of the current business condition in Australia was released. The outcome was not on the positive side, as the index posted a reading of 3 in Feb 2016, which is same as of the last reading.
The report added that the “Business conditions hit a level that is well above the long-run average, following big improvements in the major mining states of Western Australia and Queensland, as well as more moderate increases in NSW and South Australia. Business confidence did not appear to reap the benefits of higher conditions, but has remained encouragingly resilient in light of global volatility and concerns over emerging markets”.
Overall, the Aussie dollar is under a lot of bearish pressure, and a break of the highlighted trend line and support area may call for more losses.