Good day forex traders and forex koalas.
How was your trading week? I hope it was good. There was quite a move and i hope no one was caught by the shift in value.
In the previous AUD/USD forecast we noted that any intensification of the bearish momentum might see the extended bearish target of 1.02 hit. The fundamental environment was not encouraging as China faces increasing challenges. Furthermore there was no viable Euro Zone budget deficit solution in sight.
Solution : ProRealTime
Looking at the AUD/USD daily chart above we note that the currency pair is at a crucial support region. As per last week’s forecast, intensified bearish momentum will send the currency pair to 1.02. If the 1.02 support region gives way, we may be seeing more bearish pressure to come. Well i love it when my chart works Woot!
The Reserve Bank of Australia RBA has cut the cash rate to 3.25%. This is probably an effort to spur the slowing Australian economy as the mining sector eases off. The Australian dollar or commonly called the Aussie, probably lost value as demand vaporised in view of the lower yield. Trade balance also showed dropping export numbers. Not good for an export driven country.
Having said so, a top forecaster was reported forecasting that the value of the Aussie dollar will go up due to demand for a high yielding reserve currency. At 3.25%, the Australian dollar remains one of the highest yielding developed country currency. The forecaster was reported predicting 1.05 for the AUD/USD by the end of the year.
Watch out for the developments when the markets open for the new trading week.