AUD/USD Feb.07-Aussie Continues Rally on Improved Growth Outlook

The Aussie continued its rally against the US Dollar reaching a monthly high before pulling back for the week’s close. The rally continued on the back of an improved economic growth outlook for Australia. The Aussie closed the week at 1.0133 down 0.08%.

Here’s a quick update on technicals, fundamentals and community trends.

AUD/USD Technicals

• Previous sessions: AUD/USD traded higher Friday, topping January’s high against the US Dollar. The Aussie returned some of its gains toward the end of the session following a better than expected US unemployment rate, closing the week at 1.0133.
• Current range: 1.0112 – 1.0201
• Further levels: Below: 1.0122, 1.0126, 1.0133 Above: 1.0144, 1.0148, 1.0155
• AUD / USD likely to find support at Tuesday’s low of 0.9962, and resistance at 1.0223.

 

AUD/USD Fundamentals

• 00:30 – Australia – ANZ Job Advertisements m/m
• 00:30 – Australia – Retail Sales m/m                                                   Exp. 0.5%
• 20:00 – US – Consumer Credit m/m                                                                                 Exp. 2.2B

* All times are GMT.

For the major events due later in the week, see the  AUD/USD forecast.

AUD/USD Sentiment

• The Reserve Bank of Australia raised its economic growth and inflation outlook for the year. The Bank forecasts a growth rate of 4.35% and an inflation rate of 3%. This in spite of the economic damage caused by the Queensland flooding.
• The economic forecast may yet be dampened by the Queensland flooding recovery efforts in the event that the economic forecast released by the Reserve Bank fails to achieve its expectations. This would have negative implications for the Australian Dollar.
• The Australian Dollar reversed its high gains on Friday following a report from the US Department of Labor that unemployment dropped from 9.4% to 9.0%, the lowest since May 2009.

 Currensee Community: 94% are short,6% are long. 417 open positions in real accounts trading this pair at the moment. The community is expecting lower levels of the pair ahead.