AUDUSD – Aussie Dollar Forming Short-term Top Vs USD?30 November, 2016 by Aayush Jindal in AUDUSD, Fundamental Analysis, Market Analysis, Technical Analysis
AUDUSD – Aussie Dollar Forming Short-term Top Vs USD?
- The Aussie dollar recovered well after trading as low as 0.7310 against the US Dollar.
- The AUDUSD pair is currently facing a major resistance near a couple of trend lines formed on the 4-hours at 0.7480-0.7500.
- Today in Australia, the Building Permits released by the Australian Bureau of Statistics posted a decline of 12.6% in Oct 2016, compared with the forecast of 1.5%.
- In the US today, the ADP Employment Change figure will be released by the Automatic Data Processing, Inc., which is forecasted to register 160K in Nov 2016.
AUDUSD Technical Analysis
The Aussie dollar made a nice move from the 0.7310 low against the US Dollar and traded higher. The AUDUSD pair is currently facing resistance near 0.7480, and may correct lower.
On the upside, there is a clear resistance formed near 0.7480-0.7500, as there are a couple of trend lines formed on the 4-hours of AUDUSD, acting as a hurdle for the Aussie dollar buyers. Moreover, the 100 simple moving average is also just around the area.
So, the pair may correct lower before attempting an upside move once again. On the downside, the pair may find support near the 38.2% Fib retracement level of the last wave from the 0.7310 low to 0.7497 high.
Australian Building Permits
Today during the Asian session, the Australian Building Permits figure, which shows the number of permits for new construction projects was released by the Australian Bureau of Statistics.
The market was aligned for an increase of 1.5% in Oct 2016, compared with the previous month. However, the result was negative, as there was a decline of 12.6%.
In terms of the yearly change, the Australian Building Permits declined 24.9% in Oct 2016, compared with the same month a year ago. Overall, the result was not as the market expected, and may weigh on the Aussie dollar in the short term.
US ADP Employment Change
Today in the US, there is an important release, as the Employment Change will be published by the Automatic Data Processing, Inc. The forecast is slated for the change in the number of employed people in the US to register a reading of 160K in Nov 2016, up from the last reading of 147K.
If the outcome is in line with the forecast, then the US dollar may recover further against the Aussie dollar.