Good day forex traders.
Welcome to the weekly forex forecast review of the AUD/USD. While this currency pair is less popular then the EUR/USD, it does offer an alternative means of diversification.
In the previous review we noted that the region of 1.056 was functioning as a support region. We were noting on various economic reports regarding a slow down of the Australian economy.
Looking at the AUD/USD chart above, we note that the currency pair made another new low. While bullish correction returned in the later part of the week, it probably remained in the vicinity of the 1.0560 region. If the upcoming week brings another lower low, we may be looking at the bearish target of 1.0330.
The Australian equity index S&P/AXS 200 made an attempt during the week to test the 4300 level but failed. Having said so, should the Greece / Euro Zone deficit crisis continue to ease, we may see a global shift from risk aversion to risk taking activities. The Australian economy and Australian currency being categorized as being in the higher yielding category may stand to benefit from this.
Next week brings about a speech by the governor of the Reserve Bank of Australia and the release of the recent meeting details of the RBA. Do monitor closely as the currency pair may react to the details.
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