- The Aussie Dollar declined recently towards 0.7440 against the US Dollar where it found support.
- The AUDUSD pair is currently moving higher, and about to break a bearish trend line with resistance at 0.7480 on the hourly chart.
- The Australian Producer Price Index for Q1 2017 (QoQ) released by the Australian Bureau of Statistics posted a rise of 0.5%, whereas the market was expecting +0.4%.
AUDUSD Technical Analysis
The Aussie Dollar traded below 0.7500 this week against the US Dollar, and formed a low at 0.7439. Later, the AUDUSD pair formed base and started an upside move above 0.7450.
It successfully managed to move above the 23.6% Fib retracement level of the last decline from the 0.7551 high to 0.7439 low.
At the moment, the pair is attempting a break above a bearish trend line with resistance at 0.7480 on the hourly chart.
AUDUSD Hourly Chart
There is a chance that buyers could break it for a move above the 38.2% Fib retracement level of the last decline from the 0.7551 high to 0.7439 low at 0.7485.
If there is a successful close above the 0.7485 level, the pair could easily test the all-important 0.7500 handle where sellers may appear.
The hourly RSI of AUDUSD moved above the 58 level and heading higher.
Fundamentals – Australian Producer Price Index & US GDP
Today in Australia, the Producer Price Index for Q1 2017 was released by the Australian Bureau of Statistics. The market was expecting a rise of 0.4% in the PPI in Q1 2017, compared with the previous quarter.
The actual result was better, as there was a rise of 0.5% in the PPI. When we look at the yearly change, there was a rise of 1.3%, which was a lot more than the last 0.7%.
The report stated that the increase was “mainly due to rises in the prices received for Electricity supply, gas supply; and water supply, sewerage and drainage services (+2.9%), Building construction (+0.5%) and Petroleum refining and petroleum fuel manufacturing (+6.8%)“.
Overall, the market sentiment improved for the Aussie Dollar, as AUDUSD recovered above 0.7465.
Later, today, the US Gross Domestic Product for Q1 2017 will be released, which is forecasted to increase by 1.3%. The actual result may impact the course of the AUDUSD pair towards 0.7500.