Good day forex traders and readers.
Welcome to the weekend and March! Time flies and now we are almost onto the second quarter of the year. As usual I hope you have made much money from forex trading so far 🙂
In the previous AUD/USD forecast we noted that the currency pair dipped below 0.9 and further bearish pressure might see 0.888 tested. China economic developments remained highly influential on the Aussie dollar and hence close monitoring must be done.
Looking at the AUD/USD daily chart above we note that the currency pair dipped further due to bearish pressure and is now about to test the 0.8880 support region as mentioned.
Should the support of 0.8880 fail, we may be looking at a bearish target of 0.88. The extended bearish target is likely to be 0.8680.
Any recovery attempt by the bulls will need to see the resistance of 0.9 breached. The extended bullish target is likely to be 0.9140.
The US Federal Reserve was reported to be continuing on it’s reduction of the tapering program. With the resulting reduction of money in the market, many investors are concerned and hence sentiments took a dip and affected the demand for the Aussie dollar.
It was also reported that Chinese investors have overtaken Americans as the largest group of property investors. Long term readers will know that I always mentioned that China being the largest trading partner of Australia, often drives Aussie sentiments with it’s economic developments.
As we head into the new forex trading week, caution is advised as the Reserve Bank of Australia is due to meet on March 4 for the interest rate decision. Experts consensus seem to be that of a hold in rates. Any unexpected developments may trigger high volatility.
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