Hello forex traders!
It is time for another AUD/USD review and I hope that you have harvested much pips this week.
In the previous AUD/USD forecast we noted that the currency pair remained in the lower section of the bollinger band. This suggested that the bearish down trend might still be around the corner.
Looking at the AUD/USD weekly chart above, we noted that the currency pair ended the week higher. Having said so, the peak is lower than the previous week and it may be an indication of weaker demands for the Aussie currency.
There are reports discussing the recent performance of the Aussie dollar. It is mentioned that the currency is behaving like an emerging country’s currency. In the current risk averse situation, riskier assets such as the currencies of emerging countries are usually sold. With the uncertainty of the repercussion from a trade war between the US and China, the Australian Dollar struggles against a dampening effect. China is the buyer of more than a third of Australia’s export and hence it will be reasonable to expect a sizable impact when the situation between China and the US is not favorable. A number of analysts are calling for a low of 0.706 for the AUD/USD.
There is a monetary policy meeting minutes due early in the upcoming week. It is important as investors and traders usually analyze the minutes for indications of policy direction. Do practice proper money management as always.