Last week several important economic updates influenced the Forex market. US preliminary GDP fell less than expected (0.6% actual vs. 0.7% forecast). Below you will find the key events to trade on during the week from August 29 to September 2.
AUD: is the bottom touched already?
In July 2019, AUD/USD formed two peaks. The higher one is 0.7080, which is the major resistance level, being also a 9-months high. The lower one is 0.7030 – the price climbed right to it on December 31, but then reverted downwards. Since then, every day AUD/USD moved further and further down, mostly due to increasingly dovish expectations from the RBA’s interest rate decision in February. On the daily chart, it has crossed the 200-day Moving Average and is testing the 50-day MA at the level of 0.6877. If the price drops to the nearest support of 0.6850 and then crosses the 100-day MA, it will come to test the lower border of the 4-months upward trend and challenge it as such. That is a possibility, taking into account the Awesome Oscillator – the peak is already formed, giving a high likelihood of a decline in the following steps.
Nevertheless, analysts also foresee a possible reversal upwards in the short-term for the AUD. Will that be the case? Read the news with FBS and stay updated.
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Main news that will drive the market in the upcoming week include CB Consumer Confidence Index, Canadian GDP, and US Core PCE Price Index
The Federal Reserve (Fed) will announce its Interest Rate Decision and make a statement about the future monetary policy on Wednesday, September 21, GMT+3. After the higher-than-expected inflation numbers published on September 13, there’s almost no doubt the Federal Reserve will come up with another 75-basis-point rate hike. However, surprised by the CPI numbers, several Fed members announced the possibility of a 100-basis-point rate hike on Wednesday.