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AUD/USD– Australian Dollar Recovers Into the Weekend

But, there seems to be a strong resistance above that should and most likely will come into play. After all, Australia is strengthening its lock down and is unlikely to reopen anytime soon, so the Australian dollar should continue to be weighed down over time.

Moreover, there is still a rising “risk off” mindset which supports the greenback around the world.

The psychological impact of the 0.75 level is very significant, so all things being equal, and a  belief that market that will find reasons to collapse.

If this pair drops to the 0.70 level in the coming months based on longer-term technical analysis, there would be any surprise.

(Source: FXEMPIRE)

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AUD/USD Outlook: Aussie Dollar Falls to Seven-Monthly Low as Investors Rush into Safety

The resistance level can be seen at 0.7462, further uplifted to 0.7476, 0.7513, and 0.7533. While the fresh support level can be seen at 0.7413 & 0.7372 and breakdown further at 0.7339 & 0.7282 and so on.

The RSI (relative strength index) was marked at 39.64.

Bears are exerting pressure on critical levels at 0.7417/13, and a clear break here would confirm the bearish signal and pave the way for a deeper drop.

(Source: Fxstreet)

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AUD/JPY Neutral Weekly Technical Outlook

Daily Candlestick Chart

While there is still a bearish crossover between the 20- and 50-day SMAs, the 200-day counterpart could keep the attention on the upward.

Positive RSI divergence is also present, which could signal a move higher towards the SMAs in the short term.

(Source: Daily FX)

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AUD/USD Price Analysis: Bulls Lose Control Near 0.7500

AUD/USD 4-hour chart

The AUD/USD on the 4-hour chart, pair has been confronting solid resistance at the constantly falling trend line from Wednesday’s high around 0.7600 marks.
The bears might then capture the horizontal support levels of 0.7465 and 0.7445. The AUD/USD bears will then hunt upon on 0.7409 falls on Friday. However it may reverse the current trend and move north if the price breaks the bearish slope line.
The critical psychological level of 0.7500 would be the first priority for bulls in line.
There is marked 0.7520 horizontal resistance level that would then be followed by the 0.7535 high of Wednesday.
(Source: FXSTREET)
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AUD/USD starts the week off in hands of bulls

A sharp drop from monthly highs 1% recovered, putting it in a great position to start the week optimistic, boosting commodity-linked currencies.

“The scenario is also likely to dampen interest in both business and pleasure travel to other Australian states, given the potential of becoming trapped is quite real.”

From a daily standpoint, the price is at a fork in the road. A break of support, given the bearish tendency, would be likely to result in a negative extension.

(Source: FX Street)

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After the meeting, the RBA will welcome the decline in the value of the Australian dollar.

Even as it starts to reduce its quantitative easing programme, the RBA is expected to applaud the Australian dollar’s reaction to its policy moves, hoping that it would help it achieve its goal of bringing inflation down within its target range. Even as the market begins to price in rate hikes as early as 2022, the RBA repeated on Tuesday that it does not plan to raise the cash rate before 2024. Even as the market starts to price in rate hikes as early as 2022, the RBA repeated on Tuesday that it does not plan to raise the cash rate before 2024.

Following the RBA conference, markets shifted their rate expectations forwards. They had returned to where they were before the meeting by Wednesday. Because of its position, the RBA may be one of the last major central banks to raise interest rates. While many in the market saw the RBA’s actions as hawkish, it continues one of the most dovish major central banks in the world.

Source afr

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Predictions for AUD/USD and NZD/USD — Rising Risk Demand Aids Commodity-Linked Aussie, Kiwi

The AUD/USD concluded at.7490 on Friday, up 0.0059 or +0.79%, while the NZD/USD finished at.6999, up 0.0052 or +0.75%.The surge in Treasury yields in the United States on Friday boosted riskier assets and currencies, with global stock markets surging and commodity-linked Australian and New Zealand Dollars gaining traction.

Treasury yields are rising, while U.S. stocks are reaching new highs, and the dollar is weakening

Treasury yields rose further on Friday, as the 3 key US stock indexes soared to new highs, as markets eased off their fears of a faltering economic recovery following COVID-19, which had dominating trading for much of the week. Early in the week, fears of a failing recovery, fueled in part by the spread of the Delta coronavirus, lowered risk appetite and triggered flight-to-safety bond purchases, with some wagering the reflation trade had stopped.

On Thursday, 10-year US government bond yields fell to a four-and-a-half-month low as a result of this action. Investors were cutting short bond positions through July 6, according to data released on Friday, which pushed on yields. Stocks gained as financials and other economically focused sectors recovered from earlier in the week’s selloff driven by growth concerns.

Throughout the week, the Aussies and Kiwis have been under pressure.

The Australian and New Zealand currencies were under pressure for the majority of the week as global risk aversion damaged equities and lowered bond yields, while a further lockdown in Sydney posed a threat to the domestic economy. The news that Sydney’s lockdown will be prolonged for a third week did not assist the Aussie, as the Delta variant outbreak showed no signs of decline.

The country’s economic interruption merely highlighted the necessity for the Reserve Bank of Australia (RBA) to maintain its stimulus, with Governor Philip Lowe stating that interest rates are unlikely to rise before 2024.

Source finance.yahoo

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Fears over the economy have pushed the Australian dollar to a one-year low.

Investors interested in US bonds

As investors raced into safe assets like US government bonds, the decrease matched a small decline in the New Zealand dollar, which is also closely linked with growth, as well as declines in US and European sharemarkets. Only a few weeks earlier, the main concern on financial markets was that unprecedented levels of fiscal and monetary stimulus would cause inflation to spiral out of control.

Now, markets are expressing increasing concern about the possibility that a reduction in stimulus from the likes of the US Federal Reserve could hinder the comeback before the global economy has fully recovered from the pandemic.

Reason for drop Aussie dollar

The Australian dollar has dropped in value just days after the Reserve Bank of Australia announced a plan to gradually withdraw quantitative easing and stop buying yield curve control bonds in April 2024 rather than continuing it to the next issuance. The initiatives are the first, cautious steps towards reducing the record levels of monetary stimulus, which also include $200 billion in bond purchases to underpin rates and lower borrowing costs across the economy in order to stimulate development.

Spite of low in stimulus, the July meeting was dovish overall, as the RBA reiterated its expectation of raising interest rates in 2024, while market pricing suggests other central banks may move faster. The Fed’s recent effort to contemplate reducing its massive bond-buying programmes against the backdrop of a chronic COVID-19 threat, with new varieties like the delta strain forcing even fully vaccinated nations like Israel to consider fresh lockdowns, has fueled fears that stimulus may be withdrawn.

Comments on Aussie dollars by Rodrigo Catril, senior FX strategist, NAB

The Australian dollar is extremely susceptible to growth, and there has been a change in focus to growth worries. The RBA’s overall message is that it is dovish in comparison to other central banks. The economy and labour market are strengthening quicker than the RBA anticipated, indicating slowing, but wages growth has not exceeded projections, so no rate hikes are projected until 2024.

Source AFR

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USD/JPY Price Analysis: Bounces off a dip below 50-DMA as Treasury yields recover

From a short-term technical standpoint, the spot has recovered ground above the 50-day moving average (DMA) at 109.80.

This is in accordance with the 14-day Relative Strength Index (RSI) rising to 48.43, moving closer to the centre line.

However, with the momentum indicator still below 50, a test of the 21-day moving average upside hurdle at 110.113 is unlikely.

The increasing 100-day moving average (100-DMA) appears to be the line in the sand for USD/JPY buyers.

(Source: FX Street)

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AUD/USD Price Analysis: Struggles for resistance on the road to recovery

The Relative Strength Index (RSI) has flattened out, hovering just below overbought zone, supporting the recent market correction.

If the purchasing interest resumes, the bulls will break above the resistance noted above, opening the way to the July 7 high of 0.7536.

Price Analysis

Failure to reclaim the 0.7490 supply zone, on the other hand, could reawaken the selling, resulting in a new downswing towards the 0.7450.

The upward-sloping at 0.7441 could come into play further south.

(Source: fxstreet)

General Advice WarningAny advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.