By RoboForex Analytical Department
The AUD/USD pair is navigating the week starting with a steady tone, trading around 0.6590. After a significant drop last Friday, triggered by disappointment over China’s economic stimulus measures, the pair finds a momentary respite as it consolidates recent movements.
China’s announcement of a significant debt reduction and support for local governments and economic growth fell short of full transparency, leaving investors wanting more details. Given China’s crucial role as Australia’s top trading partner, any economic shifts there have a pronounced impact on the AUD’s performance.
The ongoing uncertainties surrounding the implications of Donald Trump’s U.S. presidential win also continue to influence market sentiment, particularly regarding U.S.-China relations.
This week is pivotal for Australian data with the release of Q3 payroll statistics and overall employment data, which are essential for assessing the Reserve Bank of Australia’s (RBA) future monetary policy decisions. Additionally, RBA Governor Michele Bullock’s participation in a regulatory panel might offer fresh insights into the central bank’s views on inflation and economic demand.
AUD/USD Technical Analysis
Free Reports:
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
Sign Up for Our Stock Market Newsletter – Get updated on News, Charts & Rankings of Public Companies when you join our Stocks Newsletter
Currently, AUD/USD is hovering around 0.6589 within a tight consolidation range. Anticipations lean towards a downward breakout towards 0.6544, potentially extending to 0.6494 before reversing. Upon reaching these levels, a reversal towards 0.6715 may be considered, with an interim target at 0.6600. The MACD indicator supports a bearish outlook in the short term, as it points downwards from above the zero line.
On the hourly chart, after completing a decline to 0.6557 and a subsequent correction to 0.6600, expectations are for a further dip to 0.6544. Success in reaching this level may prompt a rebound to 0.6600, testing from below before possibly resuming the downward trend towards 0.6494. The stochastic oscillator, currently below the 50 mark, underscores the potential for further declines.
Disclaimer
Any forecasts contained herein are based on the author’s particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.
- The Dollar Index strengthened on Powell’s comments. The Bank of Mexico cut the rate to 10.25% Nov 15, 2024
- EURUSD Faces Decline as Fed Signals Firm Stance Nov 15, 2024
- Gold Falls for the Fifth Consecutive Trading Session Nov 14, 2024
- Profit-taking is observed on stock indices. The data on wages in Australia haven’t met expectations Nov 13, 2024
- USD/JPY at a Three-Month Peak: No One Opposes the US Dollar Nov 13, 2024
- Can Chinese Tech earnings offer relief for Chinese stock indexes? Nov 13, 2024
- Bitcoin hits an all-time high above $88,000. Oil remains under pressure Nov 12, 2024
- Brent Crude Stumbles as Market Sentiments Turn Cautious Nov 12, 2024
- Bitcoin hits new record high just shy of $82,000! Nov 11, 2024
- The Dow Jones broke the 44 000 mark, and the S&P 500 topped 6 000 for the first time. The deflationary scenario continues in China Nov 11, 2024
