Good day forex traders.
How was the trading week for you? I hope it was good. The AUD/USD was pretty much manageable and hence it really leaves me bewildered as this currency pair is not popular. Many often the AUD/USD had been the saver for my forex trading being a diversification away from the EUR/USD.
In the previous AUD/USD forecast we noted that the currency pair was currently in a consolidation region and hence prudence was probably necessarily as both directions of trade would be possible. While China’s slowing import was negative sentiment for the Aussie dollar, the improving US employment market probably brought global positivity.
Looking at the AUD/USD daily chart above, the support region held and the currency pair went below the consolidation region. It was pretty much a bullish dominated week. If there is no adverse fundamental changes to cause a shift in sentiments, we may see 1.0440 as the immediate bullish target.
Continuing on the US employment situation, the Australian employment figures were much better than expected too. The unemployment rate came in at 5.4% which was better than expected too. This development probably contributed to the bullish pressure saw during the last few days of the trading week. As I mentioned always, employment is an important and influential factor when it comes to economics and forex trading. A good foundation here can lead to many good happenings such a increased retail spending, home sales and more.
This new forex trading week will bring us the release of the Reserve Bank of Australia meeting minutes. Many investors are keen to examine the meeting minutes in details to gain clues and insights to further monetary policies that may affect the AUD/USD.