AUDUSD – What’s Next For Aussie Dollar Vs US Dollar?16 March, 2017 by Aayush Jindal in AUDUSD, Economic News, Fundamental Analysis, Market Analysis, Technical Analysis
- The Aussie dollar failed once again this month near 0.7740 against the US Dollar, and moved down.
- The AUDUSD pair has a monster resistance near 0.7740-0.7760 on the DAILY chart, proving to be a major hurdle in the long term.
- Today, the Australian Employment Change for Feb 2017 released by the Australian Bureau of Statistics posted a change of -6.4K.
- The Australian Unemployment Rate posted a rise from 5.7% to 5.9% in Feb 2017.
AUDUSD Technical Analysis
The Aussie dollar made a number of attempts to break 0.7740-0.7760 vs the US Dollar, but failed. As a result, the AUDUSD pair was seen under pressure below 0.7600.
Looking at a long-term chart like the daily, the AUDUSD pair has clear rejections near 0.7740-0.7760. The recent failure near 0.7738 was also around the same area. It resulted in a downside move below 0.7600.
The pair also moved below the 23.6% Fib retracement level of the last wave from the 0.7159 low to 0.7738 high. However, the pair found support near the 100-day simple moving average at 0.7520, and moved back higher.
It is once again heading towards the 0.7720-40 resistance area, and might fail due to disappointing employment report in Australia.
Australian Employment Change
Today in Australia, there was a major release, as the Australian Employment Change for Feb 2017 was published by the Australian Bureau of Statistics. The market was aligned for change in the number of employed people in Australia to be 16K in Feb 2017, compared with the last reading of 13.5K.
However, the result was disappointing, as the change was -6.4K. Moreover, the Australian Unemployment Rate posted a rise from 5.7% to 5.9% in Feb 2017. Overall, the result was not encouraging and might weigh on the Aussie dollar.
The report also mentioned that:
Unemployment increased 26,000 to 748,100. The number of unemployed persons looking for full-time work increased 10,800 to 523,800 and the number of unemployed persons only looking for part-time work increased 15,100 to 224,300.
Upcoming Important Economic Releases
- Euro Zone CPI for Feb 2017 – Forecast +2% (YoY) versus +2% previous.
- BOE interest rate decision – Forecast 0.25%, versus 0.25% previous.
- US Building Permits for Feb 2017 – Forecast 1.280M (MoM) versus 1.285M previous.