Good day forex traders and readers.
Welcome to another AUD/USD review forecast as we continue to seek to earn money from forex trading!
In the previous AUD/USD forecast we noted that the currency pair was somewhat flat for the weak. A mixture of bullish and dovish reasons probably caused the inaction. The Rsserve Bank of Australia meeting minutes would be a release to monitor for influences on market sentiments.
Looking at the AUD/USD daily chart above we note that the currency pair was bearish for the week. While it attempted to recover towards the end of the week, the bullish pressure was weak and now the middle bollinger band is functioning as an immediate resistance.
A caution to all the traders out there, while we had a good bearish run for the AUD/USD ( looking at the TheGeeKKnows 24 weeks AUD/USD profile below, it is over 1000 pips ) , recent currency movements are less predictable and hence do manage your risk exposure.
The recent Rsserve Bank of Australia meeting minutes indicated that the officials were somewhat neutral towards the possibility of further rate cuts, choosing to allow both the possibility of a interest rate cut or pause to remain open. This probably gave the market little momentum to ride on.
Towards the end of the week when the AUD/USD recovered some losses, it was probably due to weaker data from the US economy. One of which was housing. A number of investors saw this as a possibility that quantitative easing tapering by the US Federal Reserve may be further delayed.
Continue to observe the sentiments of the market and use it as a tool for your forex trading. Over the week you can visit our economy section to read interesting articles on the market that may potentially affect the currencies. Alternatively you can sign up for our mailing list and get notified when new articles are released.