AUD/USD recorded sharp losses final week, with a decline of 1.7%. It was the Aussie’s worst week since mid-July. There are solely two occasions within the upcoming week. Here is an outlook on the highlights and an up to date technical evaluation for AUD/USD.
The Australian greenback continued to submit beneficial properties final week, regardless of disappointing confidence numbers. NAB enterprise confidence slowed to 1 level, in August marking a Four-month low. There was no reduction from Westpac shopper sentiment, which fell by 1.7% in July, its third decline prior to now 4 months.
The RBA minutes indicated that policymakers have left the door open to additional price cuts if wanted. This might imply one other 1/Four level reduce in October or November. Australia created a decent 34.7 thousand jobs in August, however buyers selected to concentrate on the unemployment price, which rose unexpectedly to five.three%, up from 5.2% within the earlier launch.
Within the U.S., the Federal Reserve lowered charges by 25 foundation factors for the second time in two months. Decrease charges normally means a dovish message from the Fed however this time the Fed sounded cautiously optimistic. The Fed chair said that home financial situations had been “favorable” and that the speed reduce was an insurance coverage coverage in case financial situations worsened.
Flash Manufacturing PMI: Sunday, 23:00. The index continues to submit readings simply over the 51-level, which factors to stagnation. The August launch got here in at 51.three and little change is predicted within the September studying.
Flash Companies PMI: Sunday, 23:00. The providers PMI slipped to 49.2 in August, the primary time the index has been in contraction territory since Could. This gentle studying factors to weak spot within the enterprise sector. Will we see any enchancment in September?
*All occasions are GMT
Technical traces from high to backside:
We begin with resistance at zero.7165. This line has held agency since early April.
zero.7085 was a low level in September. zero.7022 is subsequent.
zero.6988 marked the low level in April.
zero.6865 has some respiratory room in help, with AUD/USD recording sharp losses this week.
zero.6825 (talked about final week) has some respiratory room, following losses by AUD/USD final week.
zero.6744 is below strain in help.
zero.6686 was a cap again in January 2000.
zero.6627 has held in help since March 2009. zero.6532 is subsequent.
zero.6456 is the ultimate help stage for now.
I’m bearish on AUD/USD
The Australian greenback sagged final week and will discover it troublesome to rebound. Tensions within the Persian Gulf have escalated, which is weighing on threat urge for food. On the home entrance, Australian numbers have been lukewarm, and the RBA may resume its price trimming earlier than the top of 2019.
Observe us on Sticher or iTunes
Get the 5 most predictable foreign money pairs