The AUD/USD pair has been stuck between 0.7605 and 0.7687 area since last two weeks. After a massive bullish pressure from December, AUD has progressed well against USD. Today data on Westpac Consumer Sentiment were released with a positive figure of 2.3% which was previously 0.1% and New motor vehicle sales also increased by 0.6% which was previously 0.1%. This week there was no remarkable news, which might have impact on AUD, to push AUD higher to break the 0.7687 resistance. On the other hand, CPI report was published with 0.6% which was expected 0.3% and Core CPI was 0.3% which was forecasted 0.2%. Retail sales also had a significant increase of 0.4% which was expected 0.1%. Overall, USD is fundamentally quite strong due to high impact reports with positive results of the economy. So, there are some positive chances for USD to gain strength against AUD.
Now let us look at the technical view, the price is ranging between 0.7605 and 0.7687. Today market retested the 0.7687 resistance and the price bounced back inside the range without showing any sign of breaking above it. With economic events for the whole week and positive reports, there are higher chances that the price will break the support 0.7605-00 and proceed lower to 0.7500-50 area. On the other hand, if the price breaks above the resistance with a daily close we will be looking forward to buy with a target towards 0.80.
