(function() { var didInit = false; function initMunchkin() { if(didInit === false) { didInit = true; Munchkin.init('105-GAR-921'); } } var s = document.createElement('script'); s.type = 'text/javascript'; s.defer = true; s.src = '//munchkin.marketo.net/munchkin.js'; s.onreadystatechange = function() { if (this.readyState == 'complete' || this.readyState == 'loaded') { initMunchkin(); } }; s.onload = initMunchkin; document.getElementsByTagName('head')[0].appendChild(s); })();(function(h,o,t,j,a,r){ h.hj=h.hj||function(){(h.hj.q=h.hj.q||[]).push(arguments)}; h._hjSettings={hjid:1422437,hjsv:6}; a=o.getElementsByTagName('head')[0]; r=o.createElement('script');r.defer=1; r.src=t+h._hjSettings.hjid+j+h._hjSettings.hjsv; a.appendChild(r); })(window,document,'https://static.hotjar.com/c/hotjar-','.js?sv=');

AUDUSD – Aussie Dollar Faces Monster Resistance On Upside

Article background

Aayush Jindal

Key Highlights

  • The Aussie dollar is trading positively versus the US Dollar, but faces a major resistance at 0.7700.
  • There is a major bearish trend line on the daily chart of AUDUSD, which may stop the upside move.
  • Today, the New Motor Vehicle Sales released by the Australian Bureau of Statistics posted a rise of 0.8% in Sep 2016.
  • The minutes of the Reserve Bank of Australia meetings were published today, which failed to impact the Aussie dollar much.

AUDUSD Technical Analysis

The Aussie dollar this past week tested the 0.7500 support area against the US Dollar and bounced. The AUDUSD pair is currently recovering, but it may not last long, as it faces a major resistance.AUDUSD Technical AnalysisIf we have a look at the daily chart of the AUDUSD pair, there are a few things to note. First, there is a bearish trend line that may act as a resistance at 0.7700. Second, there are many support areas on the downside.The 100-day simple moving average along with a couple of bullish trend lines at 0.7500-50 may continue to provide support to the Aussie dollar buyers. We need to how the pair trades going forward, and which way it breaks for the next move.

Australian New Motor Vehicle Sales

Today in Australia, the New Motor Vehicle Sales, which measures motor vehicle sales was released by the Australian Bureau of Statistics. The last reading was +0.1%, and the market was expecting an increase in Sep 2016 as well. There was an increase of 2.5% in terms of the monthly change, and the last reading was revised to 0%.In terms of the yearly change, there was a rise of 0.8% in Sep 2016, compared with the same month a year ago. The report added that “comparing national trend estimates for September 2016 with August 2016, sales for Sports utility vehicles and other vehicles increased by 1.6% and 0.1% respectively. By contrast, sales for Passenger vehicles decreased by 0.4%”.

RBA Meeting Minutes

The Reserve Bank of Australia meeting meetings were also published today. The opening statement was “Members commenced their discussion of the Australian economy by noting that growth had moderated in the June quarter, as expected, following the very strong growth recorded in the March quarter.”The Aussie dollar buyers saw no major negative aspect in the minutes, which is helping the AUD to gain traction. However, it may face a monster challenge around the highlighted resistance area.
Excellent
Google Reviews
Open a Live accountOpen a Demo account
Loading