Good day forex traders.
Welcome to the weekly forex forecast review of the AUD/USD. Seems like this currency pair is not as popular as the EUR/USD. We may be missing out on a good opportunity to diversify.
In the previous review we noted that the currency pair made a lower low. If this continued, we might see the extended bearish target of 1.0330 hit. Fundamentally global economic drives remained driven by the Euro Zone woes. Australia included.
Looking at the AUD/USD chart above we noted that the bearish target of 1.0330 was hit. I LOVE WHEN MY CHARTS WORK! I have also installed the SMAs used for the EUR/USD reviews for more insights.
SMA 20 (red) = bearish
SMA 50 (blue) = flat
We recently had a crossover of the SMA 20 towards the down side and this may suggest more bearish pressure. Having said so, the SMA 200 ( black ) which suggests long term momentum remains flat. It is currently serving as an immediate support for the currency pair.
Being Australia’s biggest trading partner, developments in China probably affects the Australian economy substantially. A report suggests that the Australian dollar fell due to a possible contraction of Chinese manufacturing for the fifth month.
In the meanwhile the S&P/ASX 200 Australian equity index failed to test the 4300 line this week.
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