Good day forex traders.
Welcome to another forex forecast review of the AUD/USD. In the previous review we noted that the currency pair made a new low and hence bearish pressure might be present. Nonetheless the Australian economy remained robust and it’s equities market was healthy.
The AUD/USD remains glued to the 1.0750 region. This suggests a current balance of expectations for this currency pair. We may be seeing a wider range of 1.06 to 1.09 for now.
There is a wide consensus that the Reserve Bank of Australia will keep interest rate unchanged in an upcoming meeting. This is generally believed to positive for the Australian Dollar as it has a great interest rate differential versus currencies such as the US Dollar and Yen.
In the meanwhile the S&P/AXS 200 bounced off the 4300 region but is well on it’s way to recovery to test the 4300 resistance again.
Over in the US, while the economic data is looking rosier these days, as i always mentioned the US debit deficit is a can of worms waiting to be opened. Currencies with a strong fundamental banking such as the AUD and SGD will probably have much to gain when that eventually happens.
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