Good day forex traders and readers.
Welcome to another weekly review of the AUD/USD forecast. I hope you made some pips this week. Even if it is one pip, it is still a gain and hence fantastico !
In the previous AUD/USD forecast we noted on the strong bearish momentum and the extended bearish target of 0.9580. In the meanwhile we also noted a dip for the Australian equities index and hence sentiments might be on the down side.
Looking at the AUD/USD daily chart above we note that the currency pair achieved our extended bearish target of 0.9580. For readers who have been following us TheGeekKnows.com since above parity , congratulations on having a great harvest of 500 pips!
The region of 0.9580 +/- may be a crucial region to monitor. Should the AUD/USD continue to be bearish, the extended bearish target may be 0.9380.
The ASX 200 dipped for the week suggesting unchanged sentiments from the previous week. While the interest cut by the Reserve Bank of Australia works its way into the economy, we have yet to see a turning point for the moment.
On a global point of view, the euro zone continues to seep apprehension to the markets as unemployment creeps higher. Furthermore the IMF have cut the forecast for China’s growth. China is Australia’s largest trading partner and this will probably inject further aversion to the Australian economy.
We are due for an interest rate announcement early next week by the RBA and hence do be prepared for any unexpected events.