Good day forex traders and readers.
Welcome to the weekly AUD/USD forecast and I hope the week was an excellent one for you.
In the previous AUD/USD forecast we noted that the currency pair was still bounded by a narrow range. 0.94 laid right above the currency pair and hence any bullish attempt would need to overcome that too.
Looking at the AUD/USD daily chart above we note that the currency pair was mildly bullish for the week. As mentioned in the previous week forecast, 0.94 is likely a resistance and indeed the region capped the week’s ascent.
The situation is likely to be tricky now. Consider 0.94 as a pivot of sorts, above it and we may see more bullish pressure. Should the currency pair remain below 0.94, it is likely that bearish momentum accumulates.
This week’s currency movement is largely shaped by sentiments affecting the markets. One point we need to keep in mind is that the Reserve Bank of Australia is not keen on a strong Aussie dollar.
The bullish recovery seen in the later half of the week is likely due to the fact that the Australia economy performance was reported to be not as bad as expected. Investors were probably relieved and hence demand rose.
Next week brings us the unemployment rate for Australia and this is crucial as the employment market is often an indicator of an economy’s health.
To get the most out of TheGeekKnows, join our free email mailing list. Get forex updates, forecasts and warnings! Join on the right side bar.