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.
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