Russell Sandiford
Reiwa-Capital.com
The Aussie dollar benefitted greatly on Friday, as to be expected with the partial trade-deal details rolling through with positive connotations attached.
The resoundingly optimistic tone out of US Present Trump in the aftermath of Friday’s top-level trade meeting held the AUD around the 68c level, but we are likely to see that fade off quickly this morning.
The hourly AUD/USD chart is very clean for the 6775 to slide back to the ‘key level’ 6750.
The question is, where to next for AUD/USD?
What is in store for AUD/USD?
No doubt that the RBA meeting minutes will have some optimism around the rebound in Sydney & Melbourne property prices, but a rate cut is a rate cut – so the tone should likely lean heavily on the dovish side and hurt sentiment for AUDUSD in the near term.
There are also rumblings in local media here in Sydney around what Aussie QE may look like if the trade war deteriorates growth and economic data points warrant more extreme measures.
This should weigh the AUD down today, so play on the short side.
Sell
AUDUSD
0.6775
Target:
0.6720
Stop:
0.6825
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