AUD/USD Pulls Back Off 17-Month Highs After Australian PPI Data

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The AUD/USD currency pair on Friday pulled back off the current 17-month high of about 0.7228 to trade at about 0.7130 after Australian PPI data. The currency pair continues to trade within a highly volatile ascending channel in the 60-min chart. 

It has now fallen below both the 100-hour and the 200-hour SMA lines. It is also closer to crossing to oversold levels of the 14-hour RSI. This could trigger the next rebound in the pair.

AUD/USD Fundamentals Overview

From a fundamental perspective, the AUD/USD currency pair is trading at the back of a relatively busy period in both markets. On Friday, the Australian Q2 PPI missed the (QoQ) expectation of 0.3% with -1.2%. The (YoY) equivalent also came short of 1.3% with -0.4%. Earlier in the week, building permits for June missed 0.0% with -4.9% (MoM) while the consumer price index for Q2 beat -0.4% with -0.3% (YoY). The (QoQ) CPI equivalent outperformed -2.0% with -1.9%. RBA trimmed-mean CPI for Q2 missed 0.1% with -0.1% (QoQ) while the (YoY) equivalent missed 1.4% with 1.2%.

In the US, personal income for June missed the (MoM) expectation of -0.5% with -1.1% while personal spending outperformed 5.5% with 5.6%. The personal consumption expenditure price index for June missed the (YoY) estimate of 1% with 0.9%. The Chicago Purchasing Manager’s Index for July beat 43.9 with 51.9 while the Michigan Consumer Sentiment Index for the same period missed 73 with 72.5.

AUD/USD Technical Analysis (the 60-min Chart)

Technically, the AUD/USD currency pair appears to be trading within an ascending channel in the 60-min chart. This indicates a short-term bullish bias in the market sentiment. The pair has recently pulled back to touch the trendline support after facing strong resistance.

The bears will be looking to extend the current pullback towards 0.7125 or lower at 0.7107. On the other hand, the bulls will be targeting the next rebound at around 0.7150 or higher at 0.7166.

AUD/USD Technical Analysis (the Daily Chart)

In the daily chart, the AUD/USD currency pair appears to be trading within a sharply rising wedge. This indicates a strong long-term bullish bias in the market sentiment. The pair has already crossed over to overbought levels of the 14-day RSI.

The bulls will be targeting long-term profits at around 0.7183 or higher at 0.7228. On the other hand, the bears will look to capitalize on pullback profits at around 0.7098 or lower at 0.7047.

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