AUD/USD Forecast – Aussie Dollar Looks Set To Decline Vs US Dollar

AUD/USD Forecast – Aussie Dollar Looks Set To Decline Vs US Dollar

  • – The Aussie Dollar recently struggled and broke the 0.7930 support against the US Dollar.
  • – There was a break below a major bullish trend line with support at 0.7920 on the hourly chart of AUD/USD.
  • – Today in Australia, the Consumer Price Index for Q2 2017 was released by the RBA and republished by the Australian Bureau of Statistics.
  • – The outcome was below the forecast of 2.2%, as there was a rise of 1.9% in the CPI (YoY).

 

Australia’s Consumer Price Index (CPI)

Today in Australia, the Consumer Price Index for Q2 2017 was released by the RBA and republished by the Australian Bureau of Statistics. The market was positioned for the CPI to rise by 2.2% compared with the same quarter a year ago.

 

However, the actual result was below the forecast of 2.2%, as there was a rise of 1.9% in the CPI, even down from the last reading of 2.1%. In terms of the quarterly change, there was an increase of 0.2%, which was below the forecast of 0.4%. The report stated that:

The most significant price rises this quarter are medical and hospital services (+4.1%), new dwelling purchase by owner-occupiers (+0.9%), tobacco (+1.0%) and beer (+1.0%).

 

Overall, the AUD/USD pair may continue to move down and could even break the 0.7890 support for a move towards 0.7860.

 

AUD/USD Technical Analysis

The Aussie Dollar recently traded towards 0.7980-90 against the US Dollar where it faced sellers. There were more than two attempts by the AUD/USD pair to test the 0.8000 level, but the pair failed to gain bullish momentum and declined.

 

AUD/USD Technical Analysis Aussie Dollar US Dollar

 

The pair moved lower and cleared a major bullish trend line with support at 0.7920 on the hourly chart. There was even a break below the 0.7910 support and the 100 hourly simple moving average, and the pair traded as low as 0.7891 today.

 

It is currently correcting higher, but facing sellers near the 38.2% Fib retracement level of the last decline from the 0.7969 high to 0.7891 low. The broken support trend line near 0.7920 is also acting as a hurdle for more gains.

 

So, there is a chance of sellers gaining momentum in the short term and taking the pair back towards 0.7890 or even below 0.7880.

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