Good day forex traders and koalas!
Welcome to another AUD/USD forecast by The Forex Koala.
I hope everyone had a good trading week. Do remember that forex is not about becoming rich overnight but rather a slow and consistent way of earning supplementary income.
In the previous AUD/USD forecast we noted that the currency pair faced uncertainty as the Australian treasury themselves seemed to suggest that a stronger Australian dollar was not desired.
Looking at the AUD/USD daily chart above, we noted that the currency pair is back at the 1.4030 resistance region. This week’s trading range is similar to the previous week and this suggests apprehension. If this resistance region fails, we may see an extended bearish target of 1.02.
The Aussie dollar continues to be bog down by the negative sentiments generated by the Euro Zone budget deficit crisis. We do have to remember that the fundamentals of the Australian economy remains encouraging compared to other developed countries. An example would be the report by The Reserve Bank of Australia RBA that Switzerland purchased Aussie dollars and this was widely seen as a diversification away from the troubled Euro Zone.
China’s Premier was reported saying that the country should implement measures to prop up the ailing export growth in order to meet the annual economic targets. Being the largest trading partner of Australia, positive developments in China may be good for the Australian economy.