|Day's range||0.726 - 0.727|
|52-week range||0.7086 - 0.8136|
The Australian dollar continues to rally during the day on Wednesday, reaching towards the 0.7250 level. There is a certain amount of resistance here, but if we can break above this level I think that the next stop will probably be the 0.7350 level.
Impressive 2nd GDP numbers drive the Kiwi, with Brexit and retail sales numbers putting the Pound in the spotlight.
The reaction by Australian and New Zealand Dollar traders seems to suggest that the tariff announcement was overall on the soft side of market expectations.
The Euro rallied initially during the Tuesday’s session but as soon as China announced retaliatory tariffs, the market turned extremely volatile. In order to continue with the bullish sentiment, it needs to break above the 1.1725 level, which will send this pair to the 1.1750 level and then to the 1.18 level. The pair is successfully holding above the 1.3125 level and given enough time, it likely that buyers send this market much higher.
Based on the current price at .7246, the direction of the AUD/USD the rest of the session is likely to be determined by trader reaction to the Fibonacci level at .7257.
The Australian dollar had a very strong session to kick off Tuesday but did run into a bit of noise above. The markets are weighing whether or not the Chinese tariffs will amount to much, and whether the trade war continues to escalate.
It’s been a bullish start to the day, in spite of rising trade war tension, the Aussie Dollar leading the way, focus now shifting to UK inflation.
Based on the early price action and the current price at .7219, the direction of the AUD/USD into the close is likely to be determined by trader reaction to the 50% level at .7224.
Since the major fundamentals are still bearish, all trend traders can do at this point is wait for the counter-trend short-covering rally to stop. We could be looking a “big boy” money trying to take out the weaker shorts in order to reach more favorable shorting levels.
The marker highly influenced by the US-China trade relations, and deterioration can lead to a steep correction. This pair is very sensitive to the global macro developments and given the current situations relating to the US-China trade relations and Brexit issues, it would be difficult for the market to navigate higher.
The Australian dollar has rallied significantly during trading on Monday to kick off the week, as the 0.7150 level has offered support. I think at this point, it looks as if we are going to continue to go back and forth based upon belief of tariffs being levied on China.
Another set of tariffs on China supporting the U.S Dollar early on, with the RBA meeting minutes failing to give the Aussie Dollar a boost.
The pair rolled over during the Friday’s session, perhaps due to the risk-off move and noise around the market relating to the global macro developments. The 1.15 level underneath continues to be a strong support region for the pair.
Based on last week’s price action, the direction of the AUD/USD this week is likely to be determined by trader reaction to last week’s high at .7230. The main trend is down according to the weekly swing chart. However, last week’s closing price reversal bottom may be signaling a possible shift in momentum to the upside. A trade through .7230 will confirm the chart pattern and change momentum to up.
Economic data could take a back seat through the day, the markets more eager to see whether there is a green light for U.S – China trade talks.
The Australian and New Zealand Dollars could start the week under pressure due to reports of additional U.S. tariffs on China. The Wall Street Journal reported Saturday, citing individuals familiar with the matter that President Trump is planning to impose a fresh round of tariffs targeting about $200 billion in Chinese goods.
The U.S. Dollar was able to recover some of those earlier losses on Friday after the U.S. Commerce Department said domestic retail sales rose 0.1 percent in August, the smallest gain in six months, but July figures were revised higher, supporting the view of solid consumer spending in the third quarter. The Dollar/Yen posted a strong gain last week. Strong demand for higher risk assets and rising U.S. Treasury yields drove the demand for the dollar. The Australian Dollar rose last week after the government reported the Australian economy added 44,000 jobs in August in seasonally adjusted terms, well above forecasts of an 18,000 gain.
The Australian dollar has rallied significantly during the week but has run into a buzz saw of interest by sellers near the 0.72 handle. The market certainly seems to be hovering around the 0.7150 level, an area that has been important more than once.
The Australian dollar initially tried to rally during the day on Friday but rolled over as the 0.72 level has offered a bit of resistance. Below there, I see support at the 0.7150 level, which of course has been important in the past.
AUDUSD’s recovery from 0.7080 region may find it hard to prevail for long as not only 0.7235-40 horizontal-area but the descending TL figure of 0.7265 could also challenge the Aussie buyers. If the pair manage to surpass 0.7265 trend-line barrier, the 0.7320 and the 0.7355 can come back on the chart whereas 0.7370 and the 0.7410 might please the Bulls afterwards. Alternatively, the 0.7165 and the 0.7130 can offer immediate supports to the pair during its pullback before highlighting the 0.7080 mark for sellers. In case the quote continue declining past-0.7080, the 61.8% FE level of 0. ...
The pair exploded higher during the Thursday’s session sending the pair above the 1.1650 level after it was reported that CPI numbers missed the estimate in America. There was also a statement from ECB chair, Mario Draghi that stimulus is still needed in EU which is a dovish statement but the market is focusing on CPI numbers which had led to strong selling in the USD. The British Pound rallied significantly breaking above the 1.31 level after the release of CPI data in the US.
The Australian dollar rallied again during the day on Thursday but is bumping up against significant resistance in the form of the 0.72 level. That’s an area that was very noisy in the past, so it does not surprise me at all that we are starting the struggle in this area.
Economic data out of China was better than expected this morning, supporting improved risk appetite, with focus to shift to U.S retail sales and the USD.
Thursday’s close fell inside a pair of 50% levels at .7157 and .7224. This means the direction today is a toss-up.
Australia’s employment rose a strong 44.0K in August, more than reversing the modest 4.3K drop in July. U.S. producer prices unexpectedly fell in August with the weakness led by declines in the prices of food and a range of trade services. U.S. crude oil production fell by 100,000 bpd, to 10.9 million bpd, as the industry faces pipeline capacity constraints. According to the Federal Reserve’s latest Beige Book released late Wednesday, three of the Fed’s 12 districts – St. Louis, Philadelphia and Kansas City – reported weaker growth in August. Fed Governor Lael Brainard said in a speech on Wednesday that the Federal Reserve likely will continue gradual interest rate increases but will accelerate the pace if signs that financial imbalances continue to build.