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- CB Leading Index: Tuesday, 14:30. The Conference Board Index is based on 7 economic indicators, but tends to have a muted impact since most of the data has been previously released. The index declined by 0.2% in July.
- Flash Manufacturing PMI: Wednesday, 22:00. The index slowed to 49.4 in September, falling below the 50-level and into contraction territory. We now await the October data.
- Flash Services PMI: Wednesday, 22:00. The services sector improved to 52.5 in September, indicative of slight expansion. This comes after a reading of 49.2 in the August release, which showed contraction in the services sector.
*All times are GMT
Technical lines from top to bottom:
We start with resistance at 0.7165. This line has held firm since early April.
0.7085 was a low point in September. 0.7022 is next.
0.6988 marked the low point in April.
0.6865 is under pressure in resistance following strong gains by AUD/USD last week.
0.6825 (mentioned last week) has switched to a support role. It is a weak line.
0.6744 has some breathing room in support.
0.6686 was a cap back in January 2000.
0.6627 has held in support since March 2009. 0.6532 is next.
0.6456 is the final support level for now.
I remain bearish on AUD/USD
The Aussie jumped on the bandwagon and took advantage of a weak U.S. dollar, but this could be a temporary improvement. The U.S-China trade war continues to hamper Australia’s export industry and the recent rate cuts by the RBA have made the Australian dollar less attractive to investors.
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Further reading:
- 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.
Safe trading!