- Aussie Dollar climbed higher vs the US Dollar and traded close to the 0.7665 area.
- The 100 hourly simple moving average acted as a resistance and may push the AUDUSD pair down.
- There is a bullish trend line formed on the hourly of the AUDUSD pair, which may act as a support if it moves down.
- Australian Producer Price Index released by the Australian Bureau of Statistics registered a decrease of 0.2% in Q1 2016.
The Aussie dollar slowly and steadily grinded higher against the US Dollar and traded above the 50 hourly simple moving average, but it found sellers near the 100 hourly SMA. The pair is currently moving down and may correct further in the short term.
The pair may continue to trade down and test a bullish trend line formed on the hourly of the AUDUSD pair where it can find bids.
On the upside, the Aussie dollar bulls need to break the 100 hourly SMA if they need to take the pair further higher.
Australian Producer Price Index
Earlier today, the Australian Producer Price Index report was released by the Australian Bureau of Statistics. The outcome was not as the market expected, as there was a decline of 0.2% in the average changes in prices in the Australian markets by producers of commodities in Q1 2016.
The report also added regarding the intermediate demand that it fell 0.4% in the March quarter 2016, and “mainly due to falls in the prices received for petroleum refining and petroleum fuel manufacturing (-21.4%), oil and gas extraction (-17.2%) and basic polymer manufacturing (-7.3%)”.
Overall, the recent price action in AUDUSD suggests that there is a chance of a minor dip in the short term.