The Australian Dollar Is In No Hurry To Rise
By Dmitriy Gurkovskiy, Chief Analyst at RoboForex
On Tuesday October 9th, the Australian Dollar is still attempting to recover against the USD after plummeting at the beginning of October.
Strengthening of the USD that took place earlier turned out to be a serious test for the Aussie to go through as the US Dollar got significant support from increased profitability of American bonds. Currently, the USD stopped rallying, but may yet resume at any moment, and that’s why the rebound in AUDUSD was so short.
Statistics published today showed that the NAB Business Confidence index in Australia increased up to 6 points in September after being 5 points in the previous month. According to the NAB, the business conditions went up (16 in September against 15 in August), while the forward orders decreased up to 2 points (3 points previously). The decline in the latter indicator may signal the same in new orders, and that’s not good news.
According to the NAB, the trading conditions in the country deteriorated a little bit in September.
Australia will continue publishing macroeconomic reports this week. On Wednesday, the country is scheduled to report on the Westpac Consumer Sentiment index for October. Last month, the indicator lost 3% and is expected to recover. On Friday, investors will see the RBA Financial Stability Review.
From the technical point of view, AUDUSD is still trading inside the long-term downtrend. The H1 chart shows a short-term rising correction within the current descending impulse. The resistance level is at 0.7105.
After completing this correction, the instrument may start a new impulse to the downside towards the support line of the major descending channel at 0.6990. The future scenario implies a possible trend reverse: if the price rebounds from the support line, the instrument may test the resistance level at 0.7065. In case this level is broken, the pair may continue trading upwards to reach 0.7160.
Any predictions contained herein are based on the authors’ particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.