AUD/USD sets its eyes on 0.7287 as bulls reign

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.

About the author: Justin Freeman

Justin is an active trader with more than 20-years’ industry experience of working for big banks and hedge funds. He has an inside knowledge of how the financial markets work, thanks to roles including trader on a $750m Event-Arbitrage desk and CRO and COO of hedge funds running a variety of strategies. From stat-arb and trend-following CTA to fixed-income relative value. Firm’s he has worked at include big banks like Citi, and prominent hedge funds including D. E. Shaw and Millennium Capital Management.

Share

Tweet

Safest Forex Brokers 2024

	Broker	Info	Best In	Customer Satisfaction Score
#1	Your capital is at risk Founded: 2014	Global Forex Broker	BEST SPREADS Visit broker	4.8
#2	Your capital is at risk Founded: 2006	Globally regulated broker	BEST CUSTOMER SUPPORT Visit broker	4.9
#3	* 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money Founded: 2008	Global CFD Provider	Best Trading App Visit broker	5
#4	Between 74-89 % of retail investor accounts lose money when trading CFDs Founded: 2010	Global Forex Broker	Low minimum deposit Visit broker	4.9
#5	76% of CFD traders lose money Founded: 2007	Global CFD & FX Broker	ALL-INCLUSIVE TRADING PLATFORM Visit broker	4.9
#6	Your capital is at risk Founded: 2009, 2015 and 2017	Global Forex Broker	Low minimum deposit Visit broker	5
#7	Your capital is at risk Founded: 2006	CFD and Cryptocurrency Broker	CFD and Cryptocurrency Visit broker	5

Forex Fraud Certified Brokers

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.