SINO-US TRADE DEAL COULD MAKE AUSSIE REACH 0.73000 LEVEL!
With Tariffs delayed which were suppose to come into effect on 1st march and renewed optimism that a trade deal could be reached soon between the world two largest economy, Aussie could be in for a benefit! China usually imports many of its raw material from Australia and if a trade deal can be reached soon (which is a likely scenario) aussie dollar could make a jump towards the crucial 0.73000 level where weekly 50 EMA is present.
As of right now the AUD has started the week on strong positive note gaining more than 0.64% of its value since Trump announced that the tariffs that were suppose to come into effect would be delayed and he also signaled that a trade deal would be achieved soon. If a deal is achieved, Chinese economy will slowly start to pick up pace again and thereby taking the AUD higher against the USD and other currencies.
However do NOT be fooled thinking that this may make the AUD rally! The AUD faces a lot of resistance on its path to uptrend not only technically but fundamentally too. On a fundamental aspect even though a trade deal could be struck soon, other factors are not in the AUD favor such as the RBA cutting its forecast on the rates and a chinese region banning coal imports from Australia, even certain economic indicators are showing results below the forecast. Taking all this fundamental aspects into consideration, the AUD will likely not make a big move to the upside but a rather short one and after that it remains to be seen what will happen to this pair. Overall market sentiment are bearish on both AUD and NZD dollars!
Now coming to the technical aspect on this pair, the daily chart shows a descending trendline being respected on numerous occasions, a sustained break above this trendline would mean the price will likely target the 0.73000 level where the weekly 50 EMA is present. So for now its best to wait for the price to break the trendline and retest certain levels before we can make our move!
0.70000 level is a crucial support if viewed on the monthly charts and since the flash crash happened that day numerous support levels were tested and rejected, projecting that the AUD buyers are present at those levels. For now if the trendline is broken then we will wait for it to break convincingly and retrace slightly so we can make a move.
shall there be any updates i would provide them in a new thread. this post just represents My personal outlook on this current pair. cheers
As of right now the AUD has started the week on strong positive note gaining more than 0.64% of its value since Trump announced that the tariffs that were suppose to come into effect would be delayed and he also signaled that a trade deal would be achieved soon. If a deal is achieved, Chinese economy will slowly start to pick up pace again and thereby taking the AUD higher against the USD and other currencies.
However do NOT be fooled thinking that this may make the AUD rally! The AUD faces a lot of resistance on its path to uptrend not only technically but fundamentally too. On a fundamental aspect even though a trade deal could be struck soon, other factors are not in the AUD favor such as the RBA cutting its forecast on the rates and a chinese region banning coal imports from Australia, even certain economic indicators are showing results below the forecast. Taking all this fundamental aspects into consideration, the AUD will likely not make a big move to the upside but a rather short one and after that it remains to be seen what will happen to this pair. Overall market sentiment are bearish on both AUD and NZD dollars!
Now coming to the technical aspect on this pair, the daily chart shows a descending trendline being respected on numerous occasions, a sustained break above this trendline would mean the price will likely target the 0.73000 level where the weekly 50 EMA is present. So for now its best to wait for the price to break the trendline and retest certain levels before we can make our move!
0.70000 level is a crucial support if viewed on the monthly charts and since the flash crash happened that day numerous support levels were tested and rejected, projecting that the AUD buyers are present at those levels. For now if the trendline is broken then we will wait for it to break convincingly and retrace slightly so we can make a move.
shall there be any updates i would provide them in a new thread. this post just represents My personal outlook on this current pair. cheers
