AUD/USD – Aussie Dollar Breaks Key Support Area Vs US Dollar05 July, 2017 by Aayush Jindal in Market Analysis
- The Aussie Dollar fell sharply after yesterday’s RBA monetary policy decision and broke a key support at 0.7625.
- The AUD/USD pair declined below a crucial bullish trend line at 0.7620 on the 4-hours chart.
- Today in Australia, the AiG Performance of Services Index for May 2017 released by the Australian Industry Group posted a rise from 51.5 to 54.8.
- Today in the US, the FOMC meeting minutes are lined up, and the Factory orders for May 2017 will be released which is expected to decrease by 0.5% (MoM).
AUDUSD Technical Analysis
Yesterday’s RBA monetary policy decision made a huge impact on the Aussie Dollar as it tumbled below the 0.7625 support against the US Dollar. AUD/USD now looks set for more declines below 0.7600.
It seems like the market was expecting a mild hawkish stance from the RBA, but all they got was a neutral stance to send the Aussie Dollar for a toss.
During the downside, the pair broke a crucial bullish trend line at 0.7620 on the 4-hours chart. There was also a close below the 50% Fib retracement level of the last wave from the 0.7536 low to 0.7712 high.
There is a chance that the pair may soon break 0.7580 and the 100 simple moving average (H4) for further declines. The next major support is near the last swing low of 0.7540. On the upside, the broken support at 0.7625 may now act as a resistance.
AiG Performance of Services Index
Today in Australia, the AiG Performance of Services Index for May 2017 was released by the Australian Industry Group. The market was looking for a minor decline from the last reading of 51.5.
The actual result was positive, as there was a rise from 51.5 to 54.8. The report added that:
Sales grew at a faster pace than in May, up 2.2 points to 54.7 points. New orders lifted 6.1 points to 58.9 points. Stocks rose but at a slower pace than in May (51.3 points). Supplier deliveries moved into expansion (53.1 points) in June, as did employment (53.2 points) in June.
It ignited a minor correction in AUD/USD, and the pair is now approaching the 0.7625 resistance.
Economic Releases to Watch Today
- FOMC Meeting Minutes.
- Germany’s Services PMI for June 2017 – Forecast 53.7, versus 53.7 previous.
- Euro Zone Services PMI for June 2017 – Forecast 54.7, versus 54.7 previous.
- France Services PMI June 2017 – Forecast 55.3, versus 55.3 previous.
- Spanish Services PMI for June 2017 – Forecast 54.6, versus 55.1 previous.
- UK Services PMI for June 2017 – Forecast 53.5, versus 53.8 previous.