- – The Aussie Dollar after declining towards the 0.7440 level area against the US Dollar found support.
- – The AUD/USD pair is currently recovering, but facing a monster resistance near 0.7500 on the hourly chart.
- – Today in Australia, the AiG performance of the Mfg Index for April 2017 released by the Australian Industry Group posted a rise from 57.5 to 59.2.
Australian AIG Performance of the Mfg Index
Today in Australia, the AiG performance of the Mfg Index for April 2017 was released by the Australian Industry Group. The market was positioned for the Mfg Index to remain stable around the last reading of 57.5.
However, the result was better than the forecast, as the AiG performance of the Mfg Index posted an increase from the last reading of 57.5 to 59.2 in April 2017. The report stated that “All seven activity sub-indexes in the Australian PMI® expanded in April. New orders remained elevated (61.5 points) while sales surged higher (65.5 points), as did production (60.7 points), exports (58.6 points) and employment (55.9 points)“.
Overall, the result was positive, putting AUD/USD on a bullish path with a chance of a break of the 0.7500 resistance.
AUD/USD Technical Analysis
The Aussie Dollar remained under pressure recently and traded below 0.7450 against the US Dollar. The AUD/USD pair traded as low as 0.7439 where it found support and started an upside move. It managed to trade above the 23.6% Fib retracement level of the last decline from the 0.7556 high to 0.7439 low.
However, the upside move was contained by a monster resistance near 0.7490-0.7500 on the hourly chart. The same area also coincides with the 50% Fib retracement level of the last decline from the 0.7556 high to 0.7439 low and the 100 simple moving average on the same chart.
So, it won’t be easy for the Aussie Dollar buyers to break 0.7500 for further gains. However, the current momentum looks positive, which may spark a break above 0.7490 and 0.7500 in the near term. If there is a break, we can witness a move towards the 0.7525 or the 76.4% Fib retracement level of the last decline from the 0.7556 high to 0.7439 low. On the other hand, a failure could ignite a downside move towards a bullish trend line at 0.7470.Tags: AUD/USD Technical Analysis, Aussie dollar, US Dollar