- – The Aussie dollar managed to slowly move higher against the US Dollar after trading as low as 0.7310 in Nov 2016.
- – There is a major bullish trend line formed on the 4-hours chart of AUD/USD with support on the downside at 0.7430.
- – Today, Australian Home Loans released by the Australian Bureau of Statistics posted a decrease of 0.8% in Oct 2016.
Australian Home Loans and Chinese CPI
Today, Australia saw the release of the Home Loans by the Australian Bureau of Statistics. The market was expecting a decline of 1% in the number of home loans in Oct 2016.
However, the result was a bit better, as there was a decline of 0.8%. The report added that the “trend estimate for the total value of dwelling finance commitments excluding alterations and additions rose 0.3%. Investment housing commitments rose 1.5%, while owner occupied housing commitments fell 0.5%”.
Moreover, there was a major release in China today, as the Consumer Price Index was reported by the National Bureau of Statistics of China for Nov 2016. The market was aligned for an increase of 2.2% in the CPI in Nov 2016, compared with Nov 2015.
However, the result was above the forecast, as there was a rise of 2.3% in the Chinese CPI in Nov 2016. The Aussie dollar managed to gain a few bids, and may look to gain traction in the near term following a positive release in China.
AUD/USD Technical Analysis
The Aussie slowly and steadily moved higher against the US Dollar after trading as low as 0.7310 in Nov 2016. There is a nice trend developing with support on the downside in the form of a bullish trend line on the 4-hours chart.
The trend line support is also aligned with the 100 simple moving average (H4), calling for an upside move. However, the 38.2% Fib retracement level of the last decline from the 0.7777 high to 0.7310 low is acting as a resistance near 0.7480-0.7500.
A break above the stated resistance area is needed for the AUD/USD pair to ignite further gains in the short term. On the downside, the 0.7420 level is a major support.
Tags: AUD/USD Technical Analysis, Aussie dollar, Australian Home Loans, Chinese CPI, US Dollar