Good day forex traders and readers.
Welcome to the weekly forecast review of the AUD/USD. As we move towards the end of the year, many thoughts are going through my mind. One of which is that I hope you my dear readers, will have a wonderful harvest from forex trading in 2013.
In the previous AUD/USD forecast we noted that the currency pair was facing strong bearish pressure and 0.9060 might be the immediate support. From a fundamental point of view, the Reserve Bank of Australia was considering an accommodative stance and this spooked currency traders.
Looking at the AUD/USD daily chart above we note that the currency pair did face a support near 0.9060. I have also added resistance levels at 0.9140 and 0.9200. These regions may attempt to limit any bullish correction. The middle bollinger band ( green ) may also exert resistance pressure.
The extended bearish target of 0.8900 remains and I have also plotted a trend line functioning as a support too.
I mentioned previously regarding the sentiments toward the Australian economy and it remains the same. The slow down in growth for the Aussie economy in the third quarter affected the appeal of the Australian dollar. The Reserve Bank of Australia is concerned about the economic situation and had suggested the possibility of an intervention. Officials from the RBA felt that the Australian dollar was too high in value and this inevitability affected the markets’ perception towards it.
The US Non-Farm Payroll came out better than expected and the unemployment rate dropped. This is without doubt a positive news for the US economy and hence probably reduces the strength of the Australian dollar versus the US dollar.
Next week brings us more important economic data such as the Australian unemployment rate. Do trade safely and monitor the releases.