Australian Dollar Technical Forecast:AUD/USD & AUD/NZD Eyes Critical Levels
Any potential boost to the US economy and the dollar will depend on the extent to which it is able to pass through both houses without modification. The Canadian dollar is adrift in Wednesday’s session. The Australian dollar continues to gain ground. For example, it has significant exposure to China. The US dollar should remain firm at the end of the year, according to strategists at the Commonwealth Bank of Australia, as multiple factors conspire to increase the greenback. In other words, while it traded obliquely since on Monday after the outcome of the Brexit EU referendum we could still see the real post-Brexit demonstration soon to get underway. Finally, the Euro is facing the fear of contagion in which other countries can look at the separatist ways of the U.K ..
The pair has been in a constant uptrend for just over a year and has reached the important trend line from the 2014 highs. Even if it were moved above the aforementioned resistance, then the pair would have encountered another set of resistance clusters. The Loonie pair was undergoing a strong downward trend on Friday.
The (RED) bearish channel has done a great job of framing price action. When combining the bearish price channel with the 200-day moving average (12.023), we can begin to see that we are still in a corrective price channel in the halt may come soon, but overall the strength of the movement and the resistance should favor the Bulls. Another sign of movement confirming further up is the price of the rebound from the negative side of the rising channel.
The main press release will be the minutes of the last meeting (November) Federal Open Market Committee (FOMC), in which the central banks are summoned to decide whether interest rates change or not. Other noteworthy published data that attracted market attention was the August participation rate, average annual hourly wages, and the release of Ivey PMI data. Any announcement of an agreement or being close to an agreement on the divorce bill would be extremely positive for the pound. The most recent rate statement noted that the economy could continue to call for stimulus and said there was increased uncertainty regarding the timing of future rate increases. The current proposals to change the tax treatment of foreign profits for US companies also offer the possibility of supporting the dollar.
The holiday-shortened week demonstrated a clear curb on the development of general risk trends, which in turn also held back many of the reference assets. Furthermore, the back and forth in risk trends, which largely pushes the Australian dollar, has favored indecision and trapped AUD price action in a wide range of trade since the end of July. Expected tax cuts and reforms are among the key factors behind the dollar’s strength expectations, but they are not the only forces likely to push the US currency for further gains. Tax bill President Donald Trump’s signature, which combines large tax cuts with some minor changes to tax rules to simplify the general tax system, is slowly but surely making its way through Washington.
On the liberation front, there are no Canadian events scheduled. On the liberation front, there are no Canadian events. The most significant event of the week ahead is the autumn budget statement Wednesday, November 22, which will prove to be important in terms of the credibility of the UK government, and the potential growth trajectory of the economy. Elsewhere, market participants will also digest the Q3 GDP and ANZ job announcement data, so the latter is likely to provide further guidance about the prospects for the labor market.
You could lose all the deposited funds. Investors expect the Fed to play a dovish melody in the March rate statement. Low liquidity makes it extremely easy to exacerbate the volatility we have seen in the currency market. higher inflation has raised speculation that the Fed will take into account by raising its rate hike forecasts. Higher interest rates tend to increase the pound by attracting more capital flows from foreign investors looking for a place to park their money where it will earn higher returns. A low fiscal-two-figure special pressure on the repatriation of foreign profits could see more than $ 300 billion of repatriated foreign assets.
The advantage trend is obvious, as the Australian is enjoying some upward momentum. Today’s strong negative trend came following a sharp increase in the value of the Canadian currency. A sharp increase in November PMI data will probably support the dollar, although expectations are already high for a December interest rate increase (around 90%) so stronger economic data is unlikely to improve the chances more than it does already are. Australian job development has dramatically slowed in March, according to the Australian Bureau of Labor Statistics latest report. As it is, the markets are currently 22% rated in for a 25bps cut at the September meeting and 80% rated in for a November rate cut. Leveraged trading is high risk and is not suitable for everyone.