AUD/USD lost ground last week for a second straight week, as the pair closed at the 0.69 level. There are just two releases in the upcoming week. Here is an outlook at the highlights and an updated technical analysis for AUD/USD.
- MI Inflation Gauge: Monday, 0:00. This Melbourne Institute indicator provides analysts with a monthly look at inflation, as CPI is only released each quarter. The indicator has remained at low levels in recent months and came in at zero in November.
- Chinese GDP: Friday, 2:00. China’s economy has been slowing since early 2018, when growth was 6.8%. The trade war with the U.S. has dampened economic activity, as GDP dipped to 6.0% in Q3 of 2019. The fourth-quarter reading is expected to remain unchanged at 6.0%.
AUD/USD Technical Analysis
Technical lines from top to bottom:
We start with resistance at 0.7340. This is followed by 0.7250.
0.7165 has held firm since early April.
0.7085 has been a resistance line since July. This is followed by 0.7022.
0.6960 has some breathing room in resistance, following losses by AUD/USD last week.
0.6865 (mentioned last week) is an immediate support level.
0.6744 is next.
0.6627 has held in support since March 2009. It is the final support line for now.
I am bullish on AUD/USD
With the U.S. and Iran both lowering the flames, risk appetite should improve next week, barring any unforeseen clashes between the two countries. This is bullish for the Australian dollar.
- EUR/USD forecast – for everything related to the euro.
- GBP/USD forecast – Pound/dollar predictions
- USD/JPY forecast – projections for dollar/yen
- USD/CAD forecast – Canadian dollar analysis
- Forex weekly forecast – Outlook for the major events of the week.