Key Highlights
- The Aussie Dollar struggled recently and traded towards 0.7620-0.7600 against the US Dollar.
- There is a key bearish trend line forming with resistance at 0.7695 on the 4-hours chart of AUD/USD.
- Australia’s HIA/AiG Performance of Construction Index in Oct 2017 declined from the last reading of 54.7 to 53.2.
- Today in the US, the IBD/TIPP Economic Optimism Index for Nov 2017 will be released, which is forecasted to increase from 50.3 to 51.2.
AUDUSD Technical Analysis
The Aussie Dollar struggled a lot during the past few weeks and settled below 0.7700 against the US Dollar. The AUD/USD pair is currently recovering, but facing a major hurdle near 0.7695.
The pair recently formed a swing low at 0.7639 and started an upside move. It faces many resistances on the way up such as 0.7690 and 0.7700. There is also a key bearish trend line forming with resistance at 0.7695 on the 4-hours chart.
The trend line resistance is close to the 61.8% Fib retracement level of the last drop from the 0.7730 high to 0.7639 low.
Above 0.7690, the 0.7700 and 0.7715 levels are also important hurdles for buyers. A proper close above 0.7700 would only lift the market sentiment for AUD/USD.
On the other hand, the 0.7630-20 area is an important support, which must hold to contain further losses in the near term.
Australia’s HIA/AiG Performance of Construction Index
Today in Australia, the the HIA/AiG Performance of Construction Index for Oct 2017 was released by the Australian Industry Group and the Housing Industry Association. The market was looking for no major change from the last reading of 54.7.
The actual was a bit lower as there was a decline in the HIA/AiG Performance of Construction Index from 54.7 to 53.2 in Oct 2017. The best performing area was the engineering construction.
The report added:
The activity sub-index in the Australian PCI® registered 52.9 points in October. This was up by 0.3 points from September, signalling a marginal increase in the pace of overall industry growth.
Overall, the AUD/USD pair is likely to continue trading in a range below 0.7700 before the next move.
Economic Releases to Watch Today
Germany’s Industrial Production for Sep 2017 (MoM) – Forecast -0.8%, versus +2.6% previous.
UK Halifax House Price Index for Oct 2017 (MoM) – Forecast 0.2%, versus 0.8% previous.
UK Halifax House Price Index for Oct 2017 (3m/YoY) – Forecast +4.2%, versus +4% previous.
Euro Zone Retail Sales for Sep 2017 (YoY) – Forecast +3.1%, versus +1.2% previous.
Euro Zone Retail Sales for Sep 2017 (MoM) – Forecast +0.6%, versus -0.5% previous.
US IBD/TIPP Economic Optimism Index for Oct 2017 (MoM) – Forecast 54.2, versus 53.4 previous.
