|Day's range||0.732 - 0.743|
|52-week range||0.7313 - 0.8136|
A bullish tone for the U.S. Dollar was set early in the week by hawkish testimony from Fed Chair Jerome Powell. President Trump’s comments topped the dollar and led to additional selling pressure that turned the Greenback lower for the week against a basket of currencies. The People’s Bank of China set the dollar’s reference rate at 6.7671 yuan, steering the currency 0.9 percent lower and weakening it the most in two years.The Australian Dollar finished slightly lower against the U.S. Dollar last week, but was supported by better than expected Employment Change data.
Based on last week’s close at .7418, the direction of the AUD/USD this week will be determined by trader reaction to a pair of Gann angles at .7397 and .7430. The main trend is down according to the weekly swing chart. However, momentum has been trying to shift to the upside since the formation of the closing price reversal bottom at .7310 the week-ending July 6.
The Australian dollar spent most of the week soft but found enough support to turn around of form a hammer yet again. As you can see on the weekly chart, there have been multiple hammers over the last couple of weeks, so it’s obvious to me that there is a massive amount of support just below.
The Australian dollar jumped during the trading session on Friday, after finding support yet again near the 0.7325 handle. Beyond that, President Trump tweeted that he thought of the central banks around the world were taken advantage of keeping interest rates lower while the United States continue to raise theirs. Traders around the world thought this was a signal the perhaps we were stepping away from interest rate hikes at the Federal Reserve, something that the President has no control over.
Elsewhere, the Australian dollar was higher, with AUD/USD up 0.83% at 0.7416, while NZD/USD rose 0.85% to 0.6801. The loonie was higher against the greenback, with USD/CAD down 1.11% to 1.3125.
Based on the early price action, the direction of the AUD/USD the rest of the session is likely to be determined by trader reaction to Thursday’s close at .7357.
The Australian dollar sliced through the 0.7350 level during the day on Thursday, showing a breach of serious support. However, when you look at the weekly chart, you can see that we still have the bottom of a couple of hammers extending down to the 0.73 level.
While the Loonie is on for a move later today, with inflation and retail sales figures expected to support a more hawkish BoC, trade war jitters will continue to grab the headlines, with stats elsewhere on the lighter side through the day.
While six-week long descending trend-line continue restricting the AUDUSD’s near-term upside, the pair has to sustain its dip beneath the 0.7340 horizontal-support in order to revisit the recent low around 0.7310. In case the pair continue declining below 0.7310, the 61.8% FE level of 0.7255 could please the sellers. On the upside, a clear break of 0.7420 TL can trigger the pair’s recovery towards 0.7475-80 region, which if conquered could escalate the rise to 0.7510 and the 0.7550 resistances. Assuming that Bulls keep fueling the quote beyond 0.7550, the 0.7605, the 0. ...
Investing.com - The Australia’s dollar rose on Thursday after data showed the country’s employment surged in June, while the Chinese yuan fell after the central bank weakened its fixing beyond 6.7 for the first time since the currency began tumbling in June.
With general risk-off attitude, the market is testing the key support level and if it breaks further, then next immediate support in the market will be at 1.1580 level. In the longer term chart, this level has been an important support level and has been tested well in the past.
Based on the early price and the current price at .7411, the direction of the AUD/USD the rest of the session is likely to be determined by trader reaction to the short-term pivot at .7413. The main trend is down according to the daily swing chart. The trend will change to up on a trade through .7443. Today’s intraday rally stopped at .7442, just short of this main top.
The AUD/USD is being underpinned early Thursday because at face value, today’s strong employment data is very good news. However, there are still some sticking points in the economy, namely a high level of underutilized workers and low wages. With unemployment and underemployment still comparatively high, it continues to weigh on wage pressures despite strong unemployment growth.
The Australian dollar fell hard during the day on Wednesday, as the US dollar strengthened around the world. We crashed into the 0.7350 level, an area that has been massive support on longer-term charts. Because of this, an opportunity may be presenting itself.
Employment numbers give the Aussie Dollar a boost as focus shifts to today’s stats out of the UK. Another set of weak numbers and the Pound could be looking at sub-$1.30 levels, progress on Brexit doing few favors.
Investing.com - The broadly stronger dollar hit six month highs against the yen on Wednesday as optimistic comments from the head of the U.S. Federal Reserve reinforced expectations that the central bank is on track to keep gradually raising interest rates.
The market in the present scenario is going to be extremely noisy as the Brexit negotiations and strength in USD will keep the market under pressure. The market will remain under pressure as the Brexit negotiations gathered pace and fall in Tuesday’s session is likely due to an indication that the UK is going to leave EU customs union without a deal.
With the divergence in monetary policies between the Fed and the Australian and New Zealand central banks favoring the U.S. Dollar, traders are likely to continue to press the Aussie and Kiwi lower. Furthermore, any short-covering rallies are likely to be met by renewed selling pressure.
As we could have seen in the previous AUD/USD analysis, the price followed the bearish setup and at this point, it is making a breakout. The bearish triangle breakout zone is 0.7390-0.7405 and this is the POC for short trades. A 4h close below 0.7350 should initiate a continuation move towards 0.7524 and 0.7298. Selling on rallies is the valid option.
Investing.com – The dollar strengthened on Wednesday as Federal Reserve Chairman Jerome Powell presented a positive assessment of the U.S. economy during his semi-annual congressional testimony on Tuesday.
Based on Tuesday’s close at .7388, the direction of the AUD/USD on Wednesday is likely to be determined by trader reaction to the intermediate 50% level at .7397. The divergence between the monetary policies of the hawkish Federal Reserve and the dovish Reserve Bank of Australia continues to control the price action. Bearish traders are using this information to sell just about every rally.
The Australian dollar fell rather hard during the day on Tuesday, crashing into the vital 0.74 level, an area that has been supportive a couple of times now. I think at this point, it looks like we are probably going to be more range bound than anything else.
Investing.com - The dollar slid lower against a currency basket on Tuesday ahead of congressional testimony by Federal Reserve Chairman Jerome Powell, which markets will be watching closely for any indications on the path of interest rate hikes.
Investing.com – The dollar was little changed on Tuesday as investors awaited further clues on monetary policy when Federal Reserve Chairman Jerome Powell testify on the economy and monetary policy later in the day.
The market started the week with a bullish note, as the pair broke above the 1.17 level, reaching towards 1.1725 level. The British Pound shot higher during the Monday’s session reaching towards the 1.33 level but got enough resistance to fell slightly lower. The market rallied a bit during the Friday’s session reaching towards the 0.7450 level, as it found enough buyers to take the market forward.