Key Highlights
- The Aussie Dollar is in an uptrend and positioned nicely above the 0.7950 support against the US Dollar.
- There is a crucial ascending channel pattern forming with support at 0.7980 on the 4-hours chart of AUD/USD.
- Today, the RBA Interest Rate Decision Number 2017-15 was announced, and the central bank decided to keep rates at 1.5%.
- The AiG performance of the Mfg Index for June 2017 posted an increase from 55 to 56.
AUDUSD Technical Analysis
The past few days were good for the Aussie Dollar, as it moved above 0.8000 against the US Dollar. The AUD/USD pair is currently placed well and looks set to extend gains above 0.8060.
After trading as high as 0.8065, the pair started a correction and moved towards 0.7950. The 0.7960-50 held declines and protected a downside break. Looking at the 4-hours chart, there a crucial ascending channel pattern forming with support at 0.7980.
The pair recently failed near the 76.4% Fib retracement level of the last decline from the 0.8065 high to 0.7936 low. However, it remains supported near 0.8000 and 0.7980. As long as the channel support and 0.7950 is intact, the pair may aim a new monthly high.
RBA Interest Rate Decision
Today, the Interest Rate Decision Number 2017-15 was announced by the Reserve Bank of Australia. The market forecast was no change from 1.5%, and the result was the same.
The central bank statement highlighted the recent rise in AUD/USD. The report mentioned:
The Australian dollar has appreciated recently, partly reflecting a lower US dollar. The higher exchange rate is expected to contribute to subdued price pressures in the economy. It is also weighing on the outlook for output and employment. An appreciating exchange rate would be expected to result in a slower pick-up in economic activity and inflation than currently forecast.
However, the AUD/USD pair not impacted, but there was a minor dip towards 0.8010 after the release.
AiG performance of the Mfg Index
Today, the AiG performance of the Mfg Index for June 2017 was published by the Australian Industry Group. The market forecast was no change in the index from 55.
The actual result was better, as there was an increase from the last reading of 55 to 56. Both New orders and sales were up to 55.8 points and 55.8 points respectively.
The report added that:
In July manufacturers cited increased demand from construction, mining (possibly reflecting commodity price increases) and agriculture for locally manufactured construction materials, machinery and equipment.
Overall, the AUD/USD pair remains in an uptrend and it may soon attempt a break above the last high of 0.8065 in the near term.
