AUD/USD forecast and technical analysis ► review of the major events that will move the Australian Dollar (Aussie) during the upcoming week. Here is some general information. Scroll down for the latest AUD/USD outlook
The Australian dollar is a “risk” currency. It tends to do well when stocks and commodities rise and when the atmosphere improves, falling when things get worse: geopolitical risks increase.
The A$’s technical behavior is usually one of the best out there, respecting lines of support and resistance, trend lines, etc. AUD/USD has become more popular for techies in recent years, even after the financial crisis which saw the end of the famous “carry trade.”
Australia exports commodities, mostly of metals such as iron and copper. The commodity boom kept Australia out of recession for around 25 years, enjoying the mining boom related to Chinese growth. While the mining boom has probably peaked regarding growth, the sector still churns out quite a lot, as China has a soft landing.
AUD/USD Recent Moves
Interest rates have been dropping in recent years, but it seems that the new governor of the RBA, Philip Lowe, is not keen to take them lower.. Chinese data releases still have an impact, but not as strong as in the past.
The days of AUD/USD parity are gone, but the pair is moving to the high 70s, and a move higher cannot be ruled out.
Latest weekly AUD/USD forecast