|Day's Range||0.728 - 0.73|
|52 Week Range||0.7086 - 0.8136|
Inflation numbers out of Japan this morning were a reminder of how far off the BoJ is from making a move, focus shifting to the EU and the Oval Office.
The Euro initially rallied during the day on Wednesday but is facing stiff resistance at the neckline of an inverse head and shoulders pattern that is formed on the daily chart. The market is expected to continue noisy and given the trade wars, USD will experience pressure and “buy on dips” will be the right strategy to continue in this market.
Investing.com - The U.S. dollar traded near a seven-week low on Thursday while the kiwi jumped after data showed the country’s second quarter economic growth topped estimates.
Based on the early price action, the direction of the AUD/USD on Thursday is likely to be determined by trader reaction to the Fibonacci level at .7257.
The Australian dollar continues to rally during the day on Wednesday, reaching towards the 0.7250 level. There is a certain amount of resistance here, but if we can break above this level I think that the next stop will probably be the 0.7350 level.
Impressive 2nd GDP numbers drive the Kiwi, with Brexit and retail sales numbers putting the Pound in the spotlight.
The reaction by Australian and New Zealand Dollar traders seems to suggest that the tariff announcement was overall on the soft side of market expectations.
The Euro rallied initially during the Tuesday’s session but as soon as China announced retaliatory tariffs, the market turned extremely volatile. In order to continue with the bullish sentiment, it needs to break above the 1.1725 level, which will send this pair to the 1.1750 level and then to the 1.18 level. The pair is successfully holding above the 1.3125 level and given enough time, it likely that buyers send this market much higher.
Investing.com - The U.S. dollar slipped, while the Japanese yen hovered near a two-month low on Wednesday as investors digested the latest trade news.
Based on the current price at .7246, the direction of the AUD/USD the rest of the session is likely to be determined by trader reaction to the Fibonacci level at .7257.
The Australian dollar had a very strong session to kick off Tuesday but did run into a bit of noise above. The markets are weighing whether or not the Chinese tariffs will amount to much, and whether the trade war continues to escalate.
It’s been a bullish start to the day, in spite of rising trade war tension, the Aussie Dollar leading the way, focus now shifting to UK inflation.
The U.S. dollar was flat against other currencies on Tuesday as China announced retaliation tariffs against the U.S. China said it would impose new tariffs on U.S. goods worth $60 billion, effective Sept. 24, Reuters reported. The new tariffs are in response to U.S. tariffs on Monday of 10% on $200 billion in Chinese goods, which will go up to 25% at the end of the year.
Based on the early price action and the current price at .7219, the direction of the AUD/USD into the close is likely to be determined by trader reaction to the 50% level at .7224.
"We have been very clear about the type of changes that need to be made, and we have given China every opportunity to treat us more fairly," he said in the statement.
Since the major fundamentals are still bearish, all trend traders can do at this point is wait for the counter-trend short-covering rally to stop. We could be looking a “big boy” money trying to take out the weaker shorts in order to reach more favorable shorting levels.
The marker highly influenced by the US-China trade relations, and deterioration can lead to a steep correction. This pair is very sensitive to the global macro developments and given the current situations relating to the US-China trade relations and Brexit issues, it would be difficult for the market to navigate higher.
Investing.com - The yuan and the U.S. dollar traded slightly lower on Tuesday following an announcement by the Trump administration that the U.S. would put 10% tariffs on $200 billion in Chinese goods, which will go up to 25% at the end of the year.
The Australian dollar has rallied significantly during trading on Monday to kick off the week, as the 0.7150 level has offered support. I think at this point, it looks as if we are going to continue to go back and forth based upon belief of tariffs being levied on China.
Another set of tariffs on China supporting the U.S Dollar early on, with the RBA meeting minutes failing to give the Aussie Dollar a boost.
The pair rolled over during the Friday’s session, perhaps due to the risk-off move and noise around the market relating to the global macro developments. The 1.15 level underneath continues to be a strong support region for the pair.
Investing.com - The U.S. dollar slipped while the Aussie dollar edged higher on Monday as markets awaited an announcement of additional U.S. tariffs on $200 billion in Chinese goods.
Based on last week’s price action, the direction of the AUD/USD this week is likely to be determined by trader reaction to last week’s high at .7230. The main trend is down according to the weekly swing chart. However, last week’s closing price reversal bottom may be signaling a possible shift in momentum to the upside. A trade through .7230 will confirm the chart pattern and change momentum to up.