Good day forex traders.
It has been sometime since we touched on the forex forecast of the AUD/USD. Being a commodity driven currency in the Asia Pacific region, this is a currency pair i am monitoring with great interest!
Looking at the AUD/USD daily chart above, we can see that the currency pair is apparently caught in a big range. The 1.0340 region seems to be a strong resistance while the extended support target seems to be 0.9800. While my support and resistance analysis was done mainly on the EUR/USD as my readers know, 1.0140 seems to be an obvious immediate support region. Therefore if it fails, 0.98 will probably be the extended target of any bearish drive.
With the high interest rate of the Australian currency and the dynamic Asia Pacific region, the economic outlook of Australia is probably better than the western world. Having said so as we live in a well connected world now, any major economic event will probably have global effects. The recent risk aversion flowing from the Euro Zone budget deficit crisis probably hit the sentiments in Australia too as investors tighten up. The S&P/AXS 200 is holding above the 4000 support for now as a testament of the resiliency of the Australian economy.
Many economic data is due next week starting with the important Australia Retail Sales early Monday.
Related Forex Articles from the Koala Forex Training College.