AUD/USD Forecast 15 Oct 12
Good day forex traders and forex koalas!
How was your trading week? I made a small harvest of pips and i am a happy koala. Forex to me is a slow and steady game. As long as i finish the week in green, even if it is 1 pip, its cool Don’t you agree?
In the previous AUD/USD forecast we noted that the currency pair was testing the 1.02 support. The interest rate was cut by the RBA and the exports numbers were bad. Having said so there were experts who believed of a bullish scenario for the Aussie dollar by year’s end.
Solution : ProRealTime
I adjusted the 1.02 line to 1.018. It seems to be that the AUD/USD is not very sensitive to the whole number values unlike the EUR/USD. Anyway the support did hold and the currency pair corrected upwards.
While we cannot deny the possibility of another test on the 1.018 support, based on the currency chart above previous attempts failed and this may be a strong support. Any bullish momentum must face the 1.0330 resistance.
The Australian employment report was released during the week and it was a mixed bag of results. While employment increased more than expected at 14,500, the overall unemployment rate increased to 5.4%.
The Australian Treasurer Wayne Swan was reported commenting in the IMF meeting that the global economy is too dependent on Asia and urged all international parties to take action. The Euro Zone budget deficit crisis is weighting down on economies worldwide. Australia remains committed to returning the budget to surplus.
China brought about some relief though as exports were reported to have picked up the most in a few months.