The Australian Dollar inched lower against the US Dollar on Thursday morning with a price tag lower than 0.6800. The decrease in the price results after a piece of major economic news broke. The technical bias may also remain bearish because of the higher low pattern printed on the graph during the last upside move.
AUD/USD: Technical Analysis
As of this writing, the pair is being quoted around 0.6797. Following a bearish trend and a lot of resistance ahead, it seems to be decreasing further. The first support it might receive around 0.6767, its a 23.6% Fib level before it meets another support level around 0.6755, the trend line support. If the price continues dropping then major horizontal support may come across the price around 0.6670, preventing the price to pass through this level.
On the upside, two resistance levels 0.6827 and 0.6904 stand next to each other may give the price a tough time to strike through including the key horizontal level and a trend line resistance respectively. Then comes a Fibonacci level which may prevent the price from increasing further as shown in the graph above.
AUD Wage Price Index
From the Fundamental perspective, the Australian Bureau of Statistics releases the wage-price index of Australia, In this quarter, it continued as before as the past quarter, as a pointer of work cost swelling and work showcase snugness. Australia’s Reserve Bank is giving close consideration when setting interest rates. A high perusing is bullish for the AUD, while a negative perusing is viewed as bearish.
Looking at the price behavior of the pair over the past few days, trading AUDUSD around current levels for a short term position is not suggested.