The AUD pair is heavily correlated to Iron ore as the world's largest iron ore exporter. Recently Iron ore price has spiked up and that happened after China announced huge infrastructure investments (they will import Iron ore heavily) so that might be good for AUD currency. The pair showed good numbers in the change in the number of new building approvals issued and worse result in retail sales.
Technically AUDUSD is in uptrend and H4 is showing a clear up channel. The POC comes within 0.7560-0.7580 (L4, 78.6) and if the pair proceeds towards POC the new wave of buyers should show up spiking the price towards 0.7620 and 0.7740. Only if price breaks 0.7740 the way towards 0.7805 will be open. However pay attention to 0.7510 as the 4h close below will negate bullish scenario.
The analysis and the article presents Nenad's opinion. Remember, financial trading is highly speculative & may lead to the loss of your funds. Proper risk management is the Holy Grail of trading.
Recommended Content
Editors’ Picks
AUD/USD could extend the recovery to 0.6500 and above
The enhanced risk appetite and the weakening of the Greenback enabled AUD/USD to build on the promising start to the week and trade closer to the key barrier at 0.6500 the figure ahead of key inflation figures in Australia.
EUR/USD now refocuses on the 200-day SMA
EUR/USD extended its positive momentum and rose above the 1.0700 yardstick, driven by the intense PMI-led retracement in the US Dollar as well as a prevailing risk-friendly environment in the FX universe.
Gold struggles around $2,325 despite broad US Dollar’s weakness
Gold reversed its direction and rose to the $2,320 area, erasing a large portion of its daily losses in the process. The benchmark 10-year US Treasury bond yield stays in the red below 4.6% following the weak US PMI data and supports XAU/USD.
Bitcoin price makes run for previous cycle highs as Morgan Stanley pushes BTC ETF exposure
Bitcoin (BTC) price strength continues to grow, three days after the fourth halving. Optimism continues to abound in the market as Bitcoiners envision a reclamation of previous cycle highs.
US versus the Eurozone: Inflation divergence causes monetary desynchronization
Historically there is a very close correlation between changes in US Treasury yields and German Bund yields. This is relevant at the current juncture, considering that the recent hawkish twist in the tone of the Federal Reserve might continue to push US long-term interest rates higher and put upward pressure on bond yields in the Eurozone.