Current trend
Yesterday, the pair AUD/USD reached the resistance level of 0.7510, but didn't managed to break through it. Australian dollar lost the advantage gained at the start of the day, ending the day at 0.7466.
AUD will be under pressure in mid-term perspective. The reason is news on Moody's Investor Services agency lowering China's long-term index in national and foreign currency from A3 to A1. Lowering of this index can rise the interest rates for loans for Chinese government. Moody's admit that this means they expect financial power of China to lower during next years, and the overall economic debt to grow as China's economic potential falls.
This news can affect Australia and New Zealand, as they are main trade partners with China.
The minutes of the new FOMC session are due today. The futures market estimates the possibility of the central bank's increasing of key short term rates by a quarter of a point to 1.00-1.25 at the next June meeting as 79%.
If the minutes of the FOMC session appear to be more agressive, the chances of interest rates growing will increase, as Australian dollar will be sold better.
Support and resistance
On the daily chart, the pair moves within the upward channel. MACD indicator is below zero but above the signal line, and its volumes are reducing indicating possible reversal. Stochastic lines are in the overbought zone. The "pin bar" pattern has formed. There is a sale signal.
Support levels: 0.7440, 0.7400, 0.7370, 0.7330.
Resistance levels: 0.7510, 0.7545, 0.7580, 0.7610.
Trading tips
The pair may be bought if the price consolidates at 0.7510 with a target of 0.7580 and stop-loss at 0.7490.
Short positions will become relevant below 0.7440 with targets at 0.7370 and stop-loss at 0.7500.
Yesterday, the pair AUD/USD reached the resistance level of 0.7510, but didn't managed to break through it. Australian dollar lost the advantage gained at the start of the day, ending the day at 0.7466.
AUD will be under pressure in mid-term perspective. The reason is news on Moody's Investor Services agency lowering China's long-term index in national and foreign currency from A3 to A1. Lowering of this index can rise the interest rates for loans for Chinese government. Moody's admit that this means they expect financial power of China to lower during next years, and the overall economic debt to grow as China's economic potential falls.
This news can affect Australia and New Zealand, as they are main trade partners with China.
The minutes of the new FOMC session are due today. The futures market estimates the possibility of the central bank's increasing of key short term rates by a quarter of a point to 1.00-1.25 at the next June meeting as 79%.
If the minutes of the FOMC session appear to be more agressive, the chances of interest rates growing will increase, as Australian dollar will be sold better.
Support and resistance
On the daily chart, the pair moves within the upward channel. MACD indicator is below zero but above the signal line, and its volumes are reducing indicating possible reversal. Stochastic lines are in the overbought zone. The "pin bar" pattern has formed. There is a sale signal.
Support levels: 0.7440, 0.7400, 0.7370, 0.7330.
Resistance levels: 0.7510, 0.7545, 0.7580, 0.7610.
Trading tips
The pair may be bought if the price consolidates at 0.7510 with a target of 0.7580 and stop-loss at 0.7490.
Short positions will become relevant below 0.7440 with targets at 0.7370 and stop-loss at 0.7500.