Good day forex traders.
How was your forex trading week? I hope you made money harvesting lots of pips.
In the previous AUD/USD forecast we noted that the currency pair tested the middle bollinger band but failed to hold above it. The candle was a doji for the week.
The doji suggested indecisiveness or apprehension as the market traders even out on both sides of the bid. The lower bollinger band remained as the immediate support with an extended push likely to target the previous low of 0.6820.
Looking at the AUD/USD weekly chart above we note that the currency pair was slightly bullish for the week. It remained within the limits of the lower and middle bollinger bands.
The sentiments surrounding the future of the US Federal Reserve interest rate hikes continue to be dampen. The expectation is that the current market turmoils are likely to delay any interest rate. Gold prices gained as risk aversion increased.
The week saw continued depressing oil prices. Commodities linked markets continue to be affected negatively. China’s slowing pace of growth will likely add negative pressure on the Australian economy. Speculations of a Reserve Bank of Australia interest rate cut are likely to be increasing.
Next week brings the release of Reserve Bank of Australia Monetary Policy Meeting Minutes and the US FOMC Meeting Minutes. It is important for us to monitor for any hawkish or dovish development.