AUD in a clear sell zone traders!!!

FX:AUDUSD   Australian Dollar/U.S. Dollar
1061 7 14
Everything that needs to be said is on the chart.
Great analysis! Thanks!
AUD likely to finish the year near USD 0.68 level – Westpac
FXStreet (Delhi) - Bill Evans, Chief Economist at Westpac, expects that the AUD is still likely to be back near USD 0.68 by year's end and fall further to USD 0.66 in the first quarter of 2016.

Key Quotes

“It is currently around USD 0.725 and is looking strong. However we are sticking with our view for a number of key reasons. These are mainly around the Fed; commodity prices and Australia’s chronic external deficit.”

“Markets remain in denial about the Fed. Current market pricing is for a 25% chance of a rate hike in December and only two hikes in total by the end of next year. With our expectation of a move in December, markets will have to quickly reprice the profile for the course of 2016.”

“Weaker commodity prices and a narrowing interest rate differential with the US are a reliable combination to push the AUD lower.”

“A third factor is the ugly trade deficit, which is driving a deterioration in Australia’s broader external balance, which is also a key variable in our fair value model.”

“While we expect most of this damage to the AUD to occur in the 6 months to March next year markets are likely start to reassess the 100% probability of an RBA rate cut by next March. That will provide some support for AUD but the major damage is likely to already have been done.”
+1 Reply
IvanLabrie PRO DiegoCarbajal
I think the exact opposite will happen. The dollar will remain weak overall in my opinion.

“Weaker commodity prices and a narrowing interest rate differential with the US are a reliable combination to push the AUD lower.” - This is old news, and commodities are actually reversing.
ICmarkets PRO IvanLabrie
Thanks for all the comments guys. Much appreciated!

Ivan, you're not only trader we have heard the exact same thing from. Thanks for this!

IC markets
+1 Reply
It's just a very broad and sharp bear dollar move, in many instruments, as to be ignored...and faded.
I'd rather buy a pullback here.

Nice levels though, clean charting. :)
Great! Also perfect correlation against pound.
The Right Place to Go Long!
Great! Also perfect correlation against pound.
United States
United Kingdom
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing Priority Support Ideas Published Followers Following Private Messages Chat Sign Out