|Day's Range||0.687 - 0.687|
|52 Week Range||0.6672 - 0.7393|
The Australian dollar has rallied quite nicely over the last couple of days but is starting to run into resistance near the 0.69 level as it has previously. By doing so, the very likely that the market could struggle from this point.
The concurrent rallies in the AUD/USD and NZD/USD do not signify a major shift in investor sentiment. What they probably represent is position-adjustments to the drop in the chances of an RBA rate cut in November, and the jump to 93.5% in the probability of a Fed rate cut at the end of October.
‘Super Saturday’ in the UK House of Commons failed to live up to the billing as the crucial ‘meaningful vote’ on Prime Minister Johnson’s Brexit deal was scuttled by an amendment which delays, rather than defeats, the proposed agreement.
Based on the early price action, the direction of the AUD/USD the rest of the session on Monday is likely to be determined by trader reaction to Friday’s close at .6856.
Investing.com - The British pound fell against the U.S. dollar on Monday in Asia after U.K. Prime Minister Boris Johnson failed to win parliamentary backing for his divorce deal.
There are no major economic releases this week so the direction of the AUD/USD and NZD/USD is likely to be determined by trader reaction to any news about U.S.-China trade relations and Brexit negotiations.
The Aussie surged on Thursday and Friday to its highest level since September 18 after RBA Governor Philip Lowe’s latest view that a return to near 3 percent economic growth is “quite probable” by next year and that further interest rate cuts should not be assumed.
It’s another big week for the global financial markets, Corporate earnings, Brexit, trade and economic data in Focus. It’s also Draghi’s last media show…
Given the current upside momentum, the next upside target into the close is .6863. The AUD/USD could pause at this price, but also accelerate into .6879. This is the last potential resistance angle before the .6895 main top.
The Australian dollar initially fell during the week but has turned around quite rapidly to reach towards the 0.69 level. This is an area that has caused support and resistance in the past, so it will be interesting to see whether or not we can take off to the upside.
Australian dollar traders were bullish during the early part of Friday, as we continue to see the Australian dollar grind a bit higher. That being said though, we are heading towards an area that has caused resistance recently.
The Australian and NZ dollars have steadied on Friday, after impressive gains of 1.0% on Thursday. Chinese GDP missed its estimate, but the yuan is holding its own against the U.S. dollar.
Investing.com -- The dollar was mixed in narrow ranged in early trading in Europe Friday, while the pound retreated as doubts swirled both about the merits of Boris Johnson’s Brexit deal and about the likelihood of him persuading Parliament to approve it.
While China’s economy slowed in the 3rd quarter, things could have been much worse. Relief all round as focus now shifts to Brexit…
Recent rotation in multiple foreign currencies hints at the fact that a new stage of the “Capital Shift” process is taking place and that skilled technical investors need to pay very close attention to how these currencies continue to react over the next 3 to 6+ months. In the recent past, most of the world’s foreign currencies were declining in value while the US Dollar continued to strengthen. In fact, we authored many research articles about these trends and how weakness in foreign currencies will drive new foreign investment into the US stock markets for two simple reasons; strength and security.
Before the release of the jobs data, a senior Reserve Bank official said, Australia’s property downturn is not only hitting household consumption, it’s a big drag on economic growth and inflation.
The U.S. equity markets were a tad weaker Wednesday, and 10-year bond yields fell as the market s were left interpreting the inconsistent news out of the U.S.: weak retail headlines for September but upbeat earnings report, with Bank of America, reporting growth in investment-banking fees.
Keep an eye on the Unemployment Rate. This is what the Reserve Bank of Australia is watching. Another increase will cause a surge in the chances of a rate cut by the RBA next month.
The Australian dollar has broken down a little bit during the trading session on Wednesday, slicing through the 0.6750 level, an area that has essentially been “fair value.”
Based on the early price action and the current price at .6733, the direction of the AUD/USD the rest of the session on Wednesday is likely to be determined by trader reaction to the short-term Fibonacci level at .6724.