Good day forex traders and koalas.
Having a good weekend? I certainly hope so.
In the previous AUD/USD forecast we noted that the currency pair was bullish but had a immediate resistance above. Should it fail, 1.0560 might be the next resistance to be tested. Fundamentally, hawkish comments from the ECB helped strengthened the Australian dollar.
Working like a charm, the 1.0560 was tested just as i expected. I LOVE IT WHEN MY CHART WORKS!
SMA 20 = Bullish
SMA 50 = Bullish
The AUS/USD is now facing a major resistance. Some consolidating may happen if nothing spectacular pushes up the currency pair. If this resistance fails, 1.0750 may be the next extended bullish target.
The Euro Zone budget deficit crisis continues to threaten the global economy and Draghi’s hawkish stance probably got reversed when he mentioned this week that the regional debt markets were not working as intended.
The AUD/USD saw bullish relief on Friday when the US Non-Farm Payroll fared better than expected. Having said so, the unemployment in the US did creep up to 8.3%. This should not be ignored.
China mentioned that it’s Central Bank will continue to maintain a prudent monetary policy. Any show of positive development from the Chinese often benefits the Aussie dollar due to their status of being the largest trading partner with Australia.
The upcoming week brings about the next interest rate decision by the Reserve Bank of Australia RBA. Pay close attention to monitor and also gain insights of possible future policy actions.