The AUD/USD has decreased significantly today and most likely will fall even deeper as the US dollar index has edged higher aggressively, the index has jumped much above the 96.00 psychological level, the index has increased because the rate has finally closed above the 95.57 static resistance level, the USDX’s jump has forced the USD to increase versus all its rivals on the short term. The Aussie has decreased even if the Reserve Bank of Australia has maintained the monetary policy unchanged, the Cash Rate remains steady at 1.50%. The RBA has sustained that the Australia’s economy continues to grow at a moderate rate.
The Australian data have come in mixed today, but have failed to save the dollar from the downside, the Commodity Prices have increased by 3.1% in September, has increased more compared to the 0.3% growth from the previous reading period. Moreover the ANZjob Advertisements indicator has decreased by 0.3%, actually has plunged compared to the 1.7% growth from the previous reading period.
The Australian Building Approvals have decreased by 1.8% in August, less than the -5.8% estimate, have decreased again after the 12.0% growth from July, the indicator has come in better than expected, but the Aussie wasn’t impressed and has dropped again. The AUD/USD has erased the yesterday’s gains and looks determined to embrace new lows in the coming days.
The USD has increased sharply versus all its rivals even if we didn’t have any economic figures from the United States, the greenback was driven higher by technical factors. The greenback has received a helping hand from the US data in the yesterday’s trading session, the ISM Manufacturing PMI has surged from 49.4 to 51.5 points, while the Total Vehicle Sales has increased unexpectedly higher, has increased from 17.0M to 17.8M, exceeding the 17.4M.


The price has decreased after the last two days increase, you can see that the price has retested the median line (ML) of the ascending pitchfork, but has failed to close above this upside obstacle, the rate has reached new highs today, but has failed to reach and retest the median line again, signaling that the price is losing the bullish momentum. Technically the rate is expected to start a broader decrease because has failed to make new highs, has failed also to reach and retest the upper median line (uml) of the major descending pitchfork. We still need a confirmation that the rate will drop deeper in the coming period, the USDX has increased sharply, but he could retreat a little on the short term, so the USD could lose ground on the short term.


The price has pressured the 0.7637 level, but has failed to stay below this downside obstacle, if you’ll look closed you’ll notice that the price has formed a minor Head & Shoulders chart pattern, but we still need a confirmation here, should close below the 0.7637 support if he wants to drop further.

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