“AUD/USD has managed to hold onto its gains quite well this week, despite a resurgent US dollar,” note ING analysts.
Key quotes
“Challenges this week will come from China, where Tuesday’s October Industrial Production data and the ever-present risk of USD/CNY breaking above 7.00 pose downside risks to the AUD. Our bearish call on the month is largely on the back of a strong USD and a view that the prospects of a US: China trade deal will have evaporated by early December. Also look out for Australia October jobs data on Wednesday.”
“That said, AUD/USD has recently broken out of a well-defined bear channel. This warns that any near-term losses may stall in the 0.7130/0.7160 area. If this is the case, then a subsequent break above the 0.7300 could deliver substantial follow-through. Just a word of caution here!”
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