AUD/USD Tests Support Near 0.7700 Amid Forecast of Favorable US Core Durable Goods Orders

AUD/USD – Technical Analysis for Forex Trading & CFDs.

Australia – House Price Index

On Tuesday, at GMT 12:30 a.m., the Australian Bureau of Statistics released the House Price Index (HPI). It measures the changes in the selling price of houses in the 8 state capitals in Australia.

Rising house prices indicate that investors are confident about purchasing houses. Hence, Forex traders consider the HPI to be a leading indicator of investor confidence in the country. The HPI is usually released every three months in a quarter-over-quarter format.

Last month, the Australian HPI suggested that house prices in Australia’s 8 state capitals decreased by —-0.2%. The forecast for this month was set an increase of 0.1%. However, the actual figure came out much better than expected, at 1.0% increase.

United States – Core Durable Goods Orders

On Friday, at GMT 12:30 p.m., the US Census Bureau will release the month-over-month core durable goods orders figure. It measures the changes in the total value of all new purchase orders made to the US manufacturers for durable goods over the past month. However, the US Census Bureau excludes goods from the transportation sector in this figure in order to offer an accurate picture.

Forex investors consider the US core durable goods orders to be the primary gauge of production situation in the economy. It is because an increase in purchase orders indicates that US manufacturing activity and growth will happen in the near future.

Last month, the US core durable goods orders decreased by -0.3%. Analysts are expecting it to increase by 0.4% this month.

AUD/USD Forecast

Since breaking below the uptrend line on February 1, the AUD/USD fell by around 330 pips. However, over the last few weeks, the pair mostly remained range bound and formed a downward equidistant channel in the process. Currently, the AUD/USD is trading just above the support level near 0.7700.

The Australian House Price Index reading grew by 1.0% last month. On the other hand, analysts are expecting the Core Durable Goods Orders in the United States to increase by 0.4%. Here, the economic data from the United States is more important as it measures the core durable goods orders. We believe it would set a bearish fundamental outlook for the AUD/USD this week. Therefore, if the AUD/USD closes below the support near 0.7700, it would likely attract additional bearish momentum in the market.

Hence, Australian Forex traders should look out for trading opportunities below this major support level around 0.7700.

BTC/AUD Forecast

Since breaking above the downtrend line on February 19, the BTC/AUD has climbed up to test the resistance near the 11,200 level. However, so far, the bitcoin price has failed to close above this resistance level.

During the weekend, a group of central bankers, regulators and government ministers commented that cryptocurrencies do not really pose a risk to global financial stability. Meanwhile, a Wall Street analyst called Tom Lee made a new prediction that bitcoin price will likely reach 91,000 by year 2020. These two positive developments seem to have a bullish effect on the BTC/AUD price. Therefore, if the BTC/AUD breaks and closes above the resistance near 11,200, it will likely find additional bullish momentum in the market.

Hence, Australian bitcoin traders should look out for trading opportunities above this major resistance near the 11,200 level.

Asif worked as a prop trader for almost a decade, and later he managed trading operations for one of the largest foreign exchange strategy developers in Europe. Currently, he works as a trading consultant to several brokers and writes about various tech and financial topics. You can reach him at contact@asifimtiaz.com

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Asif Imtiaz

Asif worked as a prop trader for almost a decade, and later he managed trading operations for one of the largest foreign exchange strategy developers in Europe. Currently, he works as a trading consultant to several brokers and writes about various tech and financial topics. You can reach him at contact@asifimtiaz.com

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