Good day forex traders and readers.
Welcome to another AUD/USD forecast review and I hope you had a wonderful week of trading this currency pair. Nothing beats a clear trend right?
In the previous AUD/USD forecast we noted that the currency pair remained bearish and that we might see 0.95+ as an extended bearish target. There were speculations that investors were selling currencies such as the Australian dollars in exchange for US dollars so as to participate in the equities rally of the S&P 500.
Looking at the AUD/USD daily chart above we note that the currency pair remains bearish. The bearish trend is strong as we can obviously see from the chart above. As we continue to make progress towards the extended bearish target of 0.9580, expect a change in trend only if the fundamental and sentimental situation changes significantly. In the meanwhile, immediate supports are to be found as high as 0.9620.
Traders who are speculating any bullish correction should ensure that proper money management is in place.
The Australian stock index ASX 200 dipped significantly in the recent days. There are continued sentiments that the Australian job market remains challenged. Furthermore the dip in commodities prices especially gold, continue to weight on the Australian economy. While the recent interest rate cut by the Reserve Bank of Australia to support the Australian economy works it’s way in, the short term sentimental and long term fundamental influence on the currency is probably inevitable.