Aussie/Dollar trades at 0.7141 ahead of Australia Consumer Price Index tomorrow at 12:30 AM
The Australian dollar weakened earlier in the day, before moving off the 0.7141 low and recovering almost back to 0.7141.
- Australia Consumer Price Index data will be released tomorrow at 12:30 AM, with an expected decline to one. Aussie/Dollar reaction to indicator information will follow.
- Today's losses are adding to a 3 day bearish run, during which Aussie/Dollar lost 81 pips of its value.
Earlier data releases related to the Australian dollar – United States Services PMI fall short of the 55 projections, with 50.9 and continued its downward trajectory from previous figure of 57.6. United States Manufacturing PMI published today at 2:45 PM came out at 55, falling short of the 56.7 projections and continuing its decline from the previous 57.7 figure.
Here is the technical analysis of the Australian dollar before its data is released:
In terms of trend indicators, we can see that at 0.717, AUD/USD made an initial breakout below the 50 day Simple Moving Average, an indication of a negative trend. The CCI indicator is below -100. When the CCI (Commodity Channel Index) is at this level it means the price is below the average price as measured by the indicator, indicating a possible start of a new downtrend. Asset volatility analysis shows that In contrast, a slight indication of recovery comes from looking at the Bollinger bands: the lower band is at 0.7123, a low enough level to (usually) suggest that the Australian dollar is trading below its value.
Overall, looking at the technical analysis landscape, it seems that although indicators are mixed and some are pointing in different directions further drawbacks may be next for the Australian dollar.
Coming up for Aussie/Dollar — Australia Consumer Price Index is projected to outperform its last figure with one, having previously been at 0.8. The figure will be published tomorrow at 12:30 AM. Australia Trimmed Mean CPI (QoQ) (Q4) is scheduled for tomorrow at 12:30 AM.
As the markets get ready for more data to be released — GBP/NZD rallied above 2.0222 for the first time in 1 year (gaining 1 pips). It later dropped, erasing today's gains, and is currently trading lower at 2.0142. EUR/AUD broke through the 1.5851 resistance.
The Australian dollar had a bad year so far, losing 1.12%. By looking at long-term behavior, it is clear that the Australian dollar has been trading sideways for the last a month.