The AUD/USD rallies and extends the minor bounce back movement. Price climbed above a dynamic resistance line and tries to reach new obstacles on the short term. The AUD has taken full control on the short term as the USD is punished by the USDX’s aggressive drop. The dollar index continues to drop after the FOMC Meeting Minutes were released, but this could be only a temporary drop.
The Aussie received a helping hand from the Australian Home Loans, which has increased by 1.0% in August, more versus the 0.5% estimate, while the MI Inflation Expectations rose by 4.3%, more versus the 2.8% estimate.
You should be careful in the afternoon as the US is to release high impact data, the PPI is expected to increase by 0.4%, more versus the 0.2% in the previous reading period, while the Unemployment Claims could drop to 251K in the previous week.
Price rallied after the false breakdown below the 0.7755 static support and now is located above the median line (ml) of the minor descending pitchfork. Right now is pressuring the 38.2% retracement level and could reach the 0.7835 static resistance very soon.
A retest of the broken median line (ml) will confirm an increase towards the upper median line (uml) of the minor descending pitchfork. Price maintains a bearish perspective on the short term as long as is trading within the minor pitchfork’s body.
