Good day forex traders and koalas.
It is the weekend and I hope you ended the trading week with profits. Remember forex is all about striving for consistent profit rather than overnight riches.
In the previous AUD/USD weekly forecast we noted bearish momentum for the currency pair. 1.0360 was the immediate support. It was reported that Australia manufacturing dropped to the lowest in 3.5 years.
Looking at the AUD/USD daily chart above we note that the bearish drop had came from some time back and short positions would have done well over the weeks. As the 1.0360 support fails, we see the next support of 1.0230 open up for possible testing. Keep yourself close to the price action as we may see some consolidation / correction after a prolonged bearish momentum.
The Reserve Bank of Australia was reported to have reduced it’s economic growth and inflation forecast for Australia. Investments across sectors could do better and employment leaves more growth to be desired. There were speculations that previous weak global economic outlook together with a strong currency value might have snapped growth but the RBA was reported noting that recent global economic sentiments are more positive and that China seems to have stabilized.
Over the longer term we may see a finishing of the effects of the economic dip first before a bottom. By which the supportive global economic conditions will probably provide an uplift.