Basic Analysis of AUDUSD for October 12, 2017 888011000 110888 AUD/USD recently bounced off the 0.7750 support level and continued higher above 0.7815 with additional bullish ambition to 0.80. Today, AUD has been rather favorable with the financial reports, whereas USD has been quite weak due to recent even worse financial reports. Today, AUD MI Inflation Expectation revealed a boost to 4.3% from the previous value of 3.8% and Home Loans report revealed a reduction to 1.0%, up from expectations of 0.5% and listed below the previous value of 2.8%. The better-than-expected reports and increased inflation are strong signs of the financial development helping the currency to gain even more over USD today. On the USD side, today’s PPI report was published with a boost as anticipated at 0.4% from the previous value of 0.2%. Unemployment Claims revealed a favorable modification with a reduction to 243k from the previous figure of 258k, which was anticipated to be at 251k. The core PPI report showed an increase to 0.4% from the previous value of 0.1%, which was anticipated to be at 0.2%. The Petroleum Stocks information were published -2.7 M from the previous figure of -6.0 M, which was anticipated to be at -1.9 M. In addition, FOMC Member Brainard and Powell spoke neutral about essential rate of interest and future monetary policies helping the currency to gain momentum versus AUD today. Since the present scenario, AUD is quite strong with positive economic reports, where USD is still having a hard time to reveal any effect in the market as the rates of interest choice is expected to hit the market in December and no extremely enthusiastic efforts are being made by the FOMC members to signal any substantial enhancement in the future. AUD is anticipated to have an edge over USD in the coming days.Now let uslook at the technical view. The price is currently residing above the support area of 0.7750– 0.7815, however the vibrant level is still above the price and can serve as a resistance to press the cost lower once again. Since the existing market scenario, the cost is anticipated to continue higher towards 0.80 in the coming days if it remains above the assistance location with a daily close. On the other hand, if the cost breaks listed below the lowest support level of 0.7750 with a day-to-day close, then the predisposition will alter to bearish with a target to 0.7350. The bullish bias is expected to continue as the price remains above the assistance area. The material has been supplied by InstaForex

By | October 12, 2017

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