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Australian Dollar Tries to Mount a Recovery

australian

Looking at the Australian dollar (AUD)and the headline AUD/USD currency exchange rate on the above four (4) hour MT 4 chart, this benchmark Forex market currently trading above 0.7310 as this Forex markets recovers from a low price point in play at 0.73.

Looking at today’s economic calendar, Australia is publishing key labor data. This includes their monthly unemployment rate as well as the monthly employment change. This should could cause some volatility with the Australian dollar.

The United States has a full calendar as well. The Federal Open Market Committee (FOMC), the monetary policy arm of the U.S. Federal Reserve Board, will announce their monthly monetary policy and rate decision. Forex traders will be closely scrutinizing their monetary policy statement as well as their press conference.

The United Kingdom will publish their monthly core and headline consumer price index (CPI) data today. The United Kingdom is also publishing their monthly producer price index (PPI). The UK is also releasing their monthly housing price index (HPI) and RPI data today. The European Union is publishing their monthly trade balance.

Canada is also publishing monthly core and headline consumer price index data as well as their monthly foreign securities purchases.

Daily Australian Dollar Technical Analysis (AUD/USD)

Looking at price action on the above MT 4 chart, the Australian dollar has near term technical support lining up at 0.7280. The two hundred (200) hour moving average (HMA) is in play at 0.7230 followed by the downside barrier lining up at 0.7130.

There is a rising trend line support lining up at 0.7215. This rising trend line has been in play since 3 August.

On the upside, the AUD/USD Forex market has a key upside barrier lining up at 0.7350. The next layer of technical resistance lines up at 0.74 with the next layer of technical resistance then lines up at 0.7415. There is a multi-month high price point then coming into focus at 0.7455.

About David Frank

David has his MA and PhD in Economics. He is a technical analyst who has been trading in the Forex world for over a decade. As an analyst and trader, David believes in the big picture by blending together technical analysis with the fundamentals behind the scenes in the Forex and Bond markets. David’s trading strategy is unique. He blends an understanding of fundamental and macroeconomics with technical analysis to offer a unique view into Forex. He applies several strategies including carry long positions, to take advantage of high yields in non-volatile markets, as well as using quicker, chart related analysis for day trading.

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