Good day forex traders and readers.
Welcome to another weekly forecast of the AUD/USD. This currency pair is often over looked but over the years a number of our readers did score big.
In the previous AUD/USD forecast we noted that the currency pair did turn bearish as a result of the failure to breach 0.81. The 0.785 bearish target was achieved and the AUD/USD was testing the support region of 0.765. If the currency pair managed to push below 0.755, we might be looking at new lows for the AUD/USD. Close monitoring was strongly recommended.
Looking at the AUD/USD weekly chart above we note that the currency pair attempted a bullish run. It tried to achieve a foot hold at 0.7850 but failed.
It had since eased down back towards 0.76. As mentioned previously if 0.755 fails to hold, we may be looking at further bearish momentum. We will need to observe the currency pair carefully.
The US Non-Farm Payroll came across as largely positive. Jobs created was better than expected by the analysts. Although the unemployment rate increased to 5.5% , this was probably due to the increase of the number of job seekers. Economists believe that it may be due to a better economic outlook that more people are starting to look for jobs.
Australia reported its worst monthly trade deficit in almost half a century. This is probably due to the lagging growth of China weighting down on the Australian economy. Furthermore commodities prices continue to remain depressed, adding to the economic challenges.
Continue to be careful of the various economic events throughout the week.
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