Good day forex traders and readers.
Welcome to the weekly edition of the AUD/USD forecast. Did you have a good forex trading week? I hope you made money.
In the previous AUD/USD forecast we noted that the currency pair was bullish for the week. The AUD/USD tested the strong resistance of 0.9 and we needed to observe if it would breach that level. Further upside opportunities might see 0.9140.
Looking at the AUD/USD daily chart above we note that the currency pair is now above the resistance of 0.9. Having said so we do note that it fell below during the week and may do so again next week.
Should the bullish momentum continue, we will probably see 0.9140 next.
A return of the bearish pressure will likely see an attempt to push for 0.8880
The Australian economy remains plagued with sluggish economic conditions and hence the weak performance seen on the Aussie dollar. Unemployment has hit a decade high of 6%. While the Reserve Bank of Australia recently gave an indication of a hold on interest rates, it’s officials continue to mention the benefits of a weaker Australian dollar thus dampening down the sentiments.
Having said so, China which is the largest trading partner of Australia reported a better than expected consumer price increase, spurring optimism in trade activities. This probably helped provide an uplift to the AUD/USD.
As we head into the new forex trading week, make it a point as usual to monitor the economic releases.
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