The AUD/USD increased today after the last two day’s indecision and seems a little determined to climb much higher in the upcoming period. The Aussie has taken the lead and has driven the rate as the USDX has found temporary resistance and has plunged. The AUD increased on the good Australian data and on the mixed Chinese figures.

We’ll see what will really happen on the USDX in the upcoming days because technically is somehow expected to drop further after the false breakout above a dynamic resistance and after the failure to climb take out the 93.81 horizontal resistance. The dollar index failed also to close near the 93.81 level, signaling an exhaustion, the index could drop to approach the 92.49 static support, only a failure to approach this level will signal a potential bullish momentum.

The Australian Employment Change was reported at 19.8K in the former reading period, much above the 14.1K estimate, while the Unemployment Rate decreased unexpectedly from 5.6% to 5.5, even if the traders have expected to see a 5.6% rate.

The Chinese GDP increased by 6.8%, matching expectations, while the Industrial Production surged by 6.6%, exceeding the 6.4% estimate. The Fixed Asset Investment increased only by 7.5%, less versus the 7.7% estimate and versus the 7.8% growth in the former reading period, while the Retail Sales increased by 10.3, beating the 10.2% estimate and the 10.1% increase in the former reading report.

The AUD/USD increased and was almost to reach the 23.6% retracement level, but the bulls weren’t strong enough.  Technically is expected to climb much higher after the failure to retest the median line (ml) of the minor descending pitchfork, the 0.7807 and the median line (ML) of the major ascending pitchfork.

Technically, it should climb to reach the upper median line (uml) of the minor descending pitchfork, where he may find resistance again. Remains to see what will happen when will reach the 23.6% retracement level.