Fundamental Analysis of AUD/USD for February 8, 2018
February 8, 2018 8:21 am
AUD/USD has been impulsive amid the bearish pressure after rejecting off the 0.81 resistance area recently. Due to recent US positive Employment Change report, the US currency has regained its momentum over AUD after trading in a non-volatile bullish trend for a certain period of time. Recently, Australia’s Retail Sales report was published which showed a significant decrease to -0.5% from the previous value of 1.3% which was expected to be at -0.2% and Trade Balance was published with deficit of -1.36B from the previous figure of 0.04B which was expected to increase to 0.25B. The worse-than-expected readings enabled the USD to recover losses, leading to more impulsive bearish pressure in the pair with a further downwards move. Today, Australia’s NAB Quarterly Business Confidence report was published with a decrease to 6 from the previous figure of 8 and Tomorrow RBA Monetary Statement along with Home Loans report are going to be published. The Home Loans report is expected to show a negative figure of -1.1%, decreasing from the previous value of +2.1%. On the other hand, today US Unemployment Claims report is going to be published which is expected to increase to 232k from the previous figure of 230k and Mortgage Delinquencies, which is the overdue mortgage payments of the previous quarter, is expected to decrease from the previous value of 4.88%. To sum up, Australia’s upcoming economic reports this week are likely to have worse readings. Such expectations have already shifted the market sentiment in the USD favor as the US presented positive macroeconomic data. If Australia fails to provide any positive economic scores to sustain AUD gains, USD will be able to keep momentum at least for the short term.
Now let us look at the technical view. After the recent Bearish Continuing Divergence, the price has bounced off the 0.81 resistance area that is expected to push the price much lower towards 0.7750 support area in the coming days. If the price breaks below 0.7750 with a daily close, then later the price is likely to proceed towards 0.7550 support area as well. As for the recent bearish impulsive pressure, the bearish bias is expected to continue further as the price remains below 0.80 resistance area and the dynamic level of 20 EMA with a daily close.
The material has been provided by InstaForex Company – www.instaforex.com
AUD/USD has been impulsive amid the bearish pressure after rejecting off the 0.81 resistance area recently. Due to recent US positive Employment Change report, the US currency has regained its momentum over AUD after trading in a non-volatile bullish trend for a certain period of time. Recently, Australia’s Retail Sales report was published which showed a significant decrease to -0.5% from the previous value of 1.3% which was expected to be at -0.2% and Trade Balance was published with deficit of -1.36B from the previous figure of 0.04B which was expected to increase to 0.25B. The worse-than-expected readings enabled the USD to recover losses, leading to more impulsive bearish pressure in the pair with a further downwards move. Today, Australia’s NAB Quarterly Business Confidence report was published with a decrease to 6 from the previous figure of 8 and Tomorrow RBA Monetary Statement along with Home Loans report are going to be published. The Home Loans report is expected to show a negative figure of -1.1%, decreasing from the previous value of +2.1%. On the other hand, today US Unemployment Claims report is going to be published which is expected to increase to 232k from the previous figure of 230k and Mortgage Delinquencies, which is the overdue mortgage payments of the previous quarter, is expected to decrease from the previous value of 4.88%. To sum up, Australia’s upcoming economic reports this week are likely to have worse readings. Such expectations have already shifted the market sentiment in the USD favor as the US presented positive macroeconomic data. If Australia fails to provide any positive economic scores to sustain AUD gains, USD will be able to keep momentum at least for the short term.
Now let us look at the technical view. After the recent Bearish Continuing Divergence, the price has bounced off the 0.81 resistance area that is expected to push the price much lower towards 0.7750 support area in the coming days. If the price breaks below 0.7750 with a daily close, then later the price is likely to proceed towards 0.7550 support area as well. As for the recent bearish impulsive pressure, the bearish bias is expected to continue further as the price remains below 0.80 resistance area and the dynamic level of 20 EMA with a daily close.
The material has been provided by InstaForex Company – www.instaforex.com
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