Good day forex traders.
How was your week? As we head into October, I can’t help but feel that time does fly. Swoosh!
In the previous AUD/USD forecast we noted that while the currency pair is showing some bullish uplift, there remained significant resistances to be broken. Many investors were pleased with the less dovish than expected release from the Reserve Bank of Australia.
Looking at the AUD/USD weekly chart above, we note that the bearish pressure is back. The currency pair did not move much to the upside.
Just as expected, the 0.72 ( red line ) support is presenting significant reaction to the currency pair. I love it when our analysis is spot on 🙂
From a fundamental point of view, the trade war between the US and China continues to function as a drag on the AUD/USD. With China being a major trading partner of Australia, this is probably inevitable.
The US Federal Reserve raised the interest rate as expected. As the market had likely already priced in this development, we did not notice a big downside. Having said so, the interest rate hike probably stimulated demand for the US dollar to some extent.
Next week brings major releases such as the RBA rate statement. Investors will be monitoring closely for insights into possible upcoming policies. The Australian Retail Sales will be released too and it would function as a broad based pulse check of the Australian economy.
On a side note, we have exciting features coming soon. We aim to give visual information to questions such as “Does the EUR/USD usually weakens if the US Non-Farm Payroll is better than expected?” Stay tuned!