AUDUSD Looks Poised For More Losses

AUDUSD Looks Poised For More Losses

Key Highlights            

  • Aussie Dollar after making a short-term high against the US Dollar at 0.7258 moved lower.
  • There were a couple of support trend lines on the hourly chart, which were broken to take the AUDUSD pair down.
  • Australia’s Construction Work Done released by the Australian Bureau of Statistics posted a decline of 3.6% in Q4 2015, compared with the forecast of -2%.
  • Australia’s Wage Price Index posted a rise of 2.2% in Q4 2015, less than the forecast of +2.3%.

AUDUSD Technical Analysis

The Aussie Dollar after a decent run against the US Dollar found resistance near 0.7250-60, and started to move down. There were a couple of support trend lines on the hourly chart, which were broken to open the doors for a downside move.

AUDUSD

On the downside, the 100 hourly simple moving average can be seen as a support area, followed by the 200 SMA. Any further losses may take the AUDUSD pair towards the 0.7100 support area.

On the upside, the broken trend lines might act as a resistance and prevent the upside move in the short term.

Australia’s Construction Work Done

Today in Australia, the Construction Work Done, which measures the amount of construction work done was released by the Australian Bureau of Statistics. The forecast was slated for a decline of 2% in Q4 2015. However, the Construction Work Done declined more than the forecast and came in at -3.6%.

The report highlighted that “the trend estimate for total construction work done fell 1.6% in the December quarter 2015. The seasonally adjusted estimate for total construction work done fell 3.6% to $48,413.4m in the December quarter.”

Australia’s Wage Price Index

Moreover, the Wage Price Index, which is an indicator of labor cost inflation and of the tightness of labor markets was also released by the Australian Bureau of Statistics. In terms of the yearly change, the forecast was lined up for a rise of 2.3% in Q4 2015.

However, the Wage Price Index posted an increase of 2.2%. According to the report, the “rises in indexes at the industry level (in original terms) ranged from 0.1% for Mining and Administrative and support services to 1.1% for Financial and insurance services”.

Overall, the AUDUSD pair looks like under a lot of bearish pressure, and it may trade down in the near term.



Mar