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The pair fell below parity Friday on the heels of a lower global growth outlook and Chinese monetary tightening. The pair seems to be headed for lower territory. The pair closed the week at 0.9905 (-0.41% for the week).

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

 AUD/USD Technicals

  • Previous sessions: AUD/USD traded lower Friday hitting 0.9905. The pair reacted to numerous market forces driving the price down.  
  • Current range: 0.9857 – 0.9987
  • Further levels: Below: 0.9882, 0.9887, 0.9892 Above: 0.9902, 0.9907, 0.9912
  • AUD / USD likely to find support at Wednesday’s low of 0.9803, and resistance at 0.9992.

 AUD/USD Fundamentals

  • 00:30 – Australia – New Motor Vehicle Sales m/m
  • 12:15 – US – FOMC Member Plosser Speaks

* All times are GMT.

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

 AUD/USD Sentiment

  • The Queensland flooding expected to have a negative impact on growth due to disruption of the area’s coal exports and farming.
  • The Chinese Inflationary Monetary Policy tightening negatively affected the Aussie by resulting in lower commodity prices. China is Australia’s largest trading partner.
  • Latest Australian Job data lower than expected, adding to the weak economic data coming out of Australia and negatively impacting the AUD/USD.
  • The Australian Central Bank is largely expected to leave the benchmark interest rate unchanged at 4.75% this quarter.
  • Technical indicators point to a lower AUD/USD ahead as the pair fail to push through resistance levels on Friday.

Currensee Community: 93% are short, 7% are long. 365 open positions in real accounts trading this pair at the moment. The community is expecting lower levels of the pair ahead.