Good day forex traders.
Welcome to the weekly review of AUD/USD. Did you make profit this week? Certainly hope it was good!
In the previous AUD/USD forecast we noted that the currency pair was bullish and it might target 0.72. The continued trade tension between US and China affected the sentiments of investors towards the Australian economy and currency.
Looking at the AUD/USD weekly chart above we noted that the currency pair was slightly bullish. A run up attempt was made but it failed to achieve the bullish target of 0.72. This is indicative of possible bearish pressure.
The AUD/USD remains within the lower bollinger band and bearish channel that started since the beginning of the year. There is no indication that the bear run has ended and hence anyone who is keen on a bullish position should have a proper trading plan and only take on manageable risk.
From a fundamental point of view, the employment change for Australia was worst than expected. It came in positive at only 5.6k instead of the expected 15.2k. Employment is an important barometer of the economy and hence this may weaken positive sentiments.
In the US, we note that the president remains unhappy with the US Federal Reserve. He is of the opinion that the interest rate hike is too fast, threatening to snuff out any economic momentum.
There are reports of a possible meeting between the US and China president next month. As this development unfolds, we can expect to see possible influence on the AUD/USD depending on if it is positive or negative in nature.
The economic data release schedule next week is light. Having said so there are a number of Reserve Bank of Australia and US Federal Reserve officials who are due to speak. Being central banks, unexpected developments may increase volatility and hence do practice proper money management.