It has been sometime since we took a look at the AUD/USD. While it does not enjoy the popularity of EUR/USD, it does presents its own share of opportunities.
Looking at the AUD/USD weekly chart above, we observe a downside momentum since early 2018. The currency pair has just tested 0.72 and has since then eased back to 0.73.
From a technical point of view, the AUD/USD remains under the middle bollinger band. This suggests that the possibility of further bearish momentum remains. If indeed, we are looking at a possible target of the support at 0.72.
Any continuation of the bullish recovery has to overwhelm the resistance at 0.74. Considering that it was just lost recently, there may be attempts at recovering that lost ground.
From a fundamental point of view, Australia being primarily an export driven economy with huge trade volume with China, inevitably remains likely affected by the escalating trade war between China and the US.
The Reserve Bank of Australia governor indicated that rates will probably remain for the time being until more robust figures are observed for employment and inflation. This may put strain on the demand for the Australian currency.
We are due to receive both the RBA and US Federal Reserve meeting minutes this coming week. Do practice proper money management in case of any unexpected development.