AUD/USD Review: Greenback bounce capping off the Aussie's rise
- Aussie on a bullish stance, but hesitating near recent highs as the US Dollar begins to gain on the day.
- China CPI/PPI figures today couldn't push the Aussie higher as the Australian NAB surveys failed to expand.
The AUD/USD is sifting backwards into 0.7460 after climbing through the early Asia session, marking in a high of 0.7483, but a rebound in the Dollar index is seeing the Aussie taking a step back as the USD steps up in quiet Tuesday trading.
The Aussie was bolstered into a bullish stance by rising copper prices to kick off the trading week, and combined with a softening in the USD to take the AUD/USD into fresh weekly highs, but the Dollar is seeing a brief resurgence for Tuesday and the pair is stooping from the week's current highs near 0.7500.
The AUD began to waffle against the USD after China's y/y CPI came in at expectations, printing at 1.9%, while the y/y PPI came in better than expected at 4.7%; however, the Aussie NAB Business Confidence and Conditions surveys came in below expectations, with the confidence survey printing at 15 versus the expected 18, and the conditions survey coming in at 6 versus the forecast 8. Both indicators were expected to improve, but results showed a lack of upward movement and they remained steady at their previous readings.
AUD/USD Technical Analysis
Hourly charts show the AUD/USD could be forming a double-top reversal pattern, with neckline support from 0.7456, though the hourly Relative Strength Index has diverged, turning to favor the bears.
| Spot rate: | 0.7464 |
| Relative change: | 0.47% |
| High: | 0.7483 |
| Low: | 0.7427 |
| Trend: | Bullish |
| Support 1: | 0.7495 (50 day MA) |
| Support 2: | 0.7537 (61.8% Fibo retracement level) |
| Support 3: | 0.7605 (May 22nd swing high) |
| Resistance 1: | 0.7456 (double-top neckline) |
| Resistance 2: | 0.7426 (5-day MA) |
| Resistance 3: | 0.7394 (10-day MA) |
AUD/USD Chart, 15-Minute
Author
Joshua Gibson
FXStreet
Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.
