Current trend
The fall of the Australian dollar that started last week was caused by important Australian economic indicators such as Manufacturing PMI and retail sales volume that appeared to be worse than forecast. On the other hand, the policy of the Reserve Bank of Australia aimed at the moderation of AUD strengthening was confirmed by the Tuesday decision to keep the 1.5% interest rate unchanged. Australian trading balance released on the same day appeared to be with proficiency and above outlooks which is a result of weakening of the natonal currency. Last month the national trading balance demonstrated deficiency caused by the strengthening of AUD for almost two months.
A speech by deputy head of the Reserve Bank of Australia Guy Debelle was also published yesterday. The main focus of the statement was on the reduction of the volume of foreign invesments in the industrial and national debt sectors. As a result, the pair AUD/USD continued to fall and reached the zone of 0.7530-0.7550.
No important releases from Australia are due today. Speaking about the USA, the market is waiting for the usual labour market release published on the first Friday of the month, namely on the changes in nonfarm payrolls at 14:30 (GMT+2) with negative outlook, as well as for the weekly report by Baker Hughes on active oil platforms in the USA at 20:00 (GMT+2) with positive forecast. Moreover for the last two days investors have been paying attention to the results of the meeting between the US President Donald Trump and the PRC Chairman Xi Jinping.
Support and resistance
The correction of the pair is the most likely scenario for today.
Support levels: 0.7490, 0.7420, 0.7310.
Resistance levels: 0.7540, 0.7600, 0.7660, 0.7740.
Trading tips
Long positions may be opened at the market price with target at 0.7600 and stop-loss at 0.7470.
Alternatively, short positions may be opened from the level of 0.7540 with targets at 0.7420 and stop-loss at 0.7640.
The fall of the Australian dollar that started last week was caused by important Australian economic indicators such as Manufacturing PMI and retail sales volume that appeared to be worse than forecast. On the other hand, the policy of the Reserve Bank of Australia aimed at the moderation of AUD strengthening was confirmed by the Tuesday decision to keep the 1.5% interest rate unchanged. Australian trading balance released on the same day appeared to be with proficiency and above outlooks which is a result of weakening of the natonal currency. Last month the national trading balance demonstrated deficiency caused by the strengthening of AUD for almost two months.
A speech by deputy head of the Reserve Bank of Australia Guy Debelle was also published yesterday. The main focus of the statement was on the reduction of the volume of foreign invesments in the industrial and national debt sectors. As a result, the pair AUD/USD continued to fall and reached the zone of 0.7530-0.7550.
No important releases from Australia are due today. Speaking about the USA, the market is waiting for the usual labour market release published on the first Friday of the month, namely on the changes in nonfarm payrolls at 14:30 (GMT+2) with negative outlook, as well as for the weekly report by Baker Hughes on active oil platforms in the USA at 20:00 (GMT+2) with positive forecast. Moreover for the last two days investors have been paying attention to the results of the meeting between the US President Donald Trump and the PRC Chairman Xi Jinping.
Support and resistance
The correction of the pair is the most likely scenario for today.
Support levels: 0.7490, 0.7420, 0.7310.
Resistance levels: 0.7540, 0.7600, 0.7660, 0.7740.
Trading tips
Long positions may be opened at the market price with target at 0.7600 and stop-loss at 0.7470.
Alternatively, short positions may be opened from the level of 0.7540 with targets at 0.7420 and stop-loss at 0.7640.