Happy Friday, traders! Are you ready to trade at the end of the week? Here’s what you need to know before you start:
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.
The first week of November promises to be eventful, as we have the Fed meeting, the BOE update, and the NFP release. Read more details here.
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.
This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.
S&P Global, a private banking company, will release a monthly change in British Flash Manufacturing Purchasing Managers Index (PMI) on January 24, 11:30 GMT+2. The index is a leading indicator of economic health as businesses react quickly to market conditions, and purchasing managers hold the most current and relevant insight into the company's view of the economy.
The United States Bureau of Labor Statistics will publish the US Consumer Price Index (CPI) m/m on January 12 at 15:30 GMT+2. The index measures a change in the price of goods and services purchased by consumers.