The Australian dollar has held up remarkably well in the Asian trading session today considering the developments overnight in the Asian region.
North Korea once again fired a long-range missile over Japan and into the ocean which sent many Japanese people ducking for cover in fear of their lives.
When North Korea launched their previous missiles, the Aussie dollar sunk as investors exited riskier assets in favour of safer ones like gold or the US dollar but as we can see on the Chart the Australian dollar has found strong support as it has in the past 2 days at around the US79.80c mark.
If there is a strong condemnation from the US over North Korea’s missile launch such as Donald Trump threatening military action or even stronger sanctions than already in place ,the Australian dollar could fall back further to the US79.00c level where this is an even stronger support level which will be hard to break.
The currency has now formed a strong double top with the last top higher than the previous one which is a strong bullish sign.
As already mentioned, unless something drastic over North Korea happens from the US, the next stop for the Australian dollar is the previous top of US80.68c
Activity of FIBO Group, Ltd. Company is regulated by the Financial Services Commission (FSC), registration number of the licence: SIBA/L/14/1063.
Trading on Forex market implies serious risk including the risk of loss of all the funds invested. Please, take into account that trading on the forex market isn’t suitable for all investors and traders.
Unfortunately the services of the company aren’t provided to residents of Austria, Great Britain, Iraq, North Korea and the USA.
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.