AUD/USD: Parameters now at 1.0310/1.0440

The main dynamic in the market at the moment is position adjustment, but we should not forget that there are some other factors at play which are primarily AUD-negative. Falling interest rates, a slowing Chinese economy with subsequent lower commodity prices, and a somewhat stuttering domestic economy all point towards some rough times ahead for the AUD. Longer term players might have more luck playing this AUD-bearish view on the crosses. AUD/USD is still stuck in it’s weekly wedge pattern and we could easily get a test of the topside again near 1.0650 before it turns lower. In the short-term, look for support to form at 1.0310 and resistance should emerge near a 61.8% retracement level at 1.0440.

  1. Good morning Sean, funnily enough I think what market has been ignoring is that USD will be stronger if this positive data stream continues. This means less QE, equity/commodity negative hence AUD negative.

  2. Great! thank you in advance.
    Positive chinese data except for GDP at 7.4% which confirms the economy is slowing down. I guess the AUD should still go up. A failure to go up now might be very bearish…

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