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AUD/USD Daily Outlooks

Sell AUD rallies – Credit Agricole

The Australian dollar was on a roll, reaching the highest levels since August, as copper prices rallies as well.

However, we may be getting closer to a turning point. Here is the view from Credit Agricole:

Here is their view, courtesy of eFXnews:

The AUD has been in demand for most of the week, mainly due to stabilising RBA monetary policy expectations and improving global risk sentiment. Even though the RBA left monetary policy unchanged, it still left open all options regarding additional policy action later on. As such, incoming data should have a heightened impact on investors’ central bank rate expectations.

In that respect next week’s employment data will be closely watched. In an environment of muted external demand conditions it appears unlikely that the corporate sector’s hiring activity increased in September. As such it is likely that next week’s data will disappoint.

Elsewhere, caution is warranted when it comes to global risk sentiment. While Fed rate expectations are unlikely to fall further from the current levels, next week’s Chinese trade and inflation data may provide further fuel for risk aversion.

We remain in favour of selling current AUD rallies.

Australian dollar stabilizing rate outlook supportive

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Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.