Good day forex traders and koalas!
How are you this trading week? I hope you scored a good harvest of pips. If you ask me, any amount of pips gained is good. Sure beats a loss !
In the previous AUD/USD forecast we noted that the bearish momentum breached the 1.0230 support and next would be 1.0150. The fundamentals continued to result in a weak economic environment for the Aussie dollar. Mainly China’s slow down.
Looking at the AUD/USD daily chart above we note that the bearish momentum did continue and the currency pair tested the 1.0150 support. It is good when our support level works. The AUD/USD had since eased and is now around 1.0230 region. This is a popular consolidation region too and hence we should probably monitor the price action early week to determine the sentiments. It is good to be prudent when trading forex.
China’s economic situation continues to allow possible weakness into the Australian economy. As the largest trading partner of Australia, I would see both economies as interlinked. A recent report showed that China’s imports had dropped and this probably means that the Australian end was not exporting as much to China. Being an export driven economy, this development does not bear too well for Australia.
The better than expected US Non-Farm Payroll probably injected some positive sentiments into the markets. Having said so we should continue to monitor developments. Tensions are raising in the Korean peninsular too. Next week brings us more economic data such as Australia’s job market.