AUD/USD Forecast – Aussie Dollar Crashes After CPI Report Vs US Dollar

AUD/USD Forecast – Aussie Dollar Crashes After CPI Report Vs US Dollar

  • – The Aussie Dollar declined sharply and broke the 0.7750 support against the US Dollar.
  • – There are two bearish trend lines forming with resistance at 0.7745 and 0.7770 on the hourly chart of AUD/USD.
  • – Recently in Australia, the Consumer Price Index for Q3 2017 was released by the RBA and republished by the Australian Bureau of Statistics.
  • – The outcome was below the forecast of +0.8%, as there was a rise of 0.6% in the CPI (QoQ).

Australia’s New Motor Vehicle Sales

Recently in Australia, the Consumer Price Index for Q3 2017 was released by the RBA and republished by the Australian Bureau of Statistics. The market was positioned for an increase of around 0.8% in the CPI compared with the previous month.

 

The actual result was below the forecast of +0.8%, as there was a rise of 0.6% in the CPI. Looking at the yearly change, there was an increase of 1.8%, which was disappointing compared with the forecast of 2%. The report added that:

 

The most significant price rises this quarter are electricity (+8.9%), tobacco (+4.1%), international holiday travel and accommodation (+4.1%) and new dwelling purchase by owner-occupiers (+0.8%).

 

Overall, the AUD/USD pair is now in the bearish zone below 0.7750-60 and likely to continue trading lower in the near term.

 

AUD/USD Technical Analysis

The Aussie Dollar started a new downside move from the 0.7880-90 swing high against the US Dollar. The AUD/USD pair accelerated the downside move after the release of the CPI report and declined below the 0.7770 and 0.7750 support levels.

 

AUD/USD Technical Analysis Aussie Dollar US Dollar

 

At the moment, the pair is well below the 100 hourly simple moving average and traded as low as 0.7715. It might correct higher in the short term, with an initial resistance around the 23.6% Fib retracement level of the last decline from the 0.7783 high to 0.7715 low.

 

On the upside, there are two bearish trend lines forming with resistance at 0.7745 and 0.7770 on the hourly chart. The first trend line at 0.7745 is also near the 50% Fib retracement level of the last decline from the 0.7783 high to 0.7715 low.

 

Overall, it seems like the AUD/USD might continue to struggle, and any recoveries toward 0.7750 would face a strong selling interest.

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