AUD/USD sets its eyes on 0.7287 as bulls reign

Justin Freeman
Stock Price Chart merged with a hand on a laptop

The Aussie dollar’s recent rises in its pair with the greenback in part reflect the overall trend of global forex sentiment moving away from the dollar.

The American currency has lost its position of high demand in all sorts of pairs since the positions it saw during the coronavirus pandemic, when it was wanted for its unrivalled liquidity.

However, its recent declines are marked, and this is true in the Australian dollar pair.

There, it has spent the week rising steadily beyond a high point spotted last week, and the underlying trends appear to be bullish.

The price charts suggest that the next level to contend with is likely to be the 0.7287 point.

Some strategists suggest that if this is beaten, the market could soon get even more bullish.

From there, some analysts predict that it could even go as high as 0.7391.

However, the price charts are, of course, not the only way to properly assess how a currency is performing – and the Australian dollar also has an interesting week coming up from an economic calendar perspective.

Monday of next week, for example, will begin with the country’s securities inflation levels being published at 1am GMT.

This will cover the month of August and was last recorded at 1.3% on a year-on-year basis.

Month on month, however, it was last recorded at 0.9%.

Later in the day, there will be a private sector credit report covering July.

This report will be released by the Reserve Bank of Australia, and is expected to indicate the levels of cash borrowed by the Australian private sector.

This is expected to show a change from -0.2% to +0.2% on a month-on-month basis.

The metric is due out at 1:30am GMT.

A further indication of the performance of the Australian private sector will come in the same time slot, when company gross operating profits are published by the Australian Bureau of Statistics.

This is due to cover Q2 2020, and to reveal a quarter-on-quarter rise from 1.1% to 1.2%.

Another event scheduled for the day, meanwhile, is the Reserve Bank of Australia’s annual report, which is due out at an as yet unspecified time.

This will cover a range of recent events experienced by the central bank, such as its financial performance and currency management.

Monday will end with a purchasing managers’ index release for August exploring what trading conditions look like in the country’s manufacturing industry.

This will be released by the Commonwealth Bank, and is expected to have a neutral result.

It is due to show no change from its previous position of 53.9.

Whether or not the markets will interpret this with relief or as a sign of stagnation, however, remains to be seen.

The release is due to be published in the 11pm GMT time slot.


Justin Freeman

Latest news

Keep Trading the Technicals to Take Advantage of a Quiet News Week
The absence of any significant diarised news announcements this week was highlighted on Monday in Trading Strategies to Suit The Week of 18th October. Read more
Trading Strategies to Suit The Week of 18th October
With minimal news events diarised for the week beginning the 18th of October, it looks like fans of technical analysis might be best positioned to test their strategies in the next few days. Read more

Safest Forest Brokers 2020

Broker Info Best In Customer Satisfaction Score
#1 ForexTime LogoYour capital is at risk Founded: 2011 Global CFD & FX Broker
Number One Broker
BEST FOREX BROKER Visit broker
5
#2 BlackBull Markets LogoYour capital is at risk Founded: 2014 Global Forex Broker
Number One Broker
BEST SPREADS Visit broker
4.8
#3 Your capital is at risk Founded: 2014 Global Forex & CFD Broker
Number One Broker
Best Trading Conditions Visit broker
4.9
#4 Forex Broker eToro Logo67% of CFD traders lose Founded: 2006 Global CFD & FX Broker
Number One Broker
ALL-INCLUSIVE TRADING PLATFORM Visit broker
4.9
#5 Forex Broker Pepperstone LogoBetween 74-89 % of retail investor accounts lose money when trading CFDs Founded: 2010 Global Forex Broker
Number One Broker
Low minimum deposit Visit broker
4.9

    Forex Fraud Certified Brokers

    Vantage FX logo
    Plus500 Small Logo
    OctaFX Logo
    Pepperstone Logo
    LegacyFX Small Logo
    HYCM Logo
    AvaTrade logo
    IC Markets Logo
    IQ Option Logo
    Exness Small Logo
    skilling logo
    XM Logo
    BlackBull Markets Logo
    investous logo
    FXTM Logo
    Forex.com Logo
    City Index Logo