The currency pair dropped sharply as the USD was boosted by the USDX’s rally. The Aussie dropped also because the Australian data have failed to impress in the morning.

Some good US data will force the greenback to win more ground versus its rivals. The USD dominates the currency market again as the dollar index has finally managed to jump above a very strong dynamic resistance and now approaches another one.

USDX increased as much as 91.08 level and now decreased a little. A minor retreat was natural after the amazing upside rally. Technically, it should approach new highs, this situation will force the USD to appreciate further.

The Aussie has taken a hit from the Australian CPI, which it has increased only by 0.4% in the first quarter, less versus the 0.5% estimate and versus a 0.6% in the former reading period. The Trimmed Mean CPI rose by 0.5%, matching expectations.

The United States CB Consumer Confidence will be released in the afternoon and is expected to drop from 127.7 to 126.0 points, the New Home Sales could increase from 618K to 625K in the previous month, while the Richmond Manufacturing Index is expected to reach the 16 points. The HPI may increase by 0.5% and could keep the USD’s good pace.

AUD/USD has failed one again to make a breakout above the second warning line (wl2) of the former descending pitchfork, so the impressive drop was natural. Price downward momentum was paused by the first warning line (wl1).

Technically, it is expected to drop towards the median line (ML) of the major black descending pitchfork. It should drop further after the failure to stay above the lower median line (lml) of the blue ascending pitchfork. A valid breakdown below the median line (ML) will confirm a further drop in the upcoming period.