Good day forex traders and readers.
Welcome to our forecast of the AUD/USD. How are your trades so far? Hope it is great!
We previously note bearish pressure for the AUD/USD and it is likely not to pass in the near future.
Looking at the AUD/USD weekly chart above we note that the currency pair was slightly down for the week. The long candle is indicative of the volatility experienced due to the yuan devaluation.
The immediate resistance is likely at 0.74 while further advancement may see us at 0.75. Should the bearish momentum continue, an extended support should lie at the region of 0.723.
With the continued depressed prices for commodities, the outlook is rather bleak for the Australian economy. Furthermore with the Chinese economy slowing down, the mining industries are affected and thus contributes further to the slowdown.
The sharp rise of the U.S. Dollar is probably also due to the risk aversion of the markets. It is indicative that the green buck remains an asset of choice during uncertainty.