Is Aussie ready for an uptrend?

wrapper

News
Analysis
- Fundamental
  
  Daily fundamental analysis
  
  Weekly fundamental analysis
- Technical
  
  Daily technical analysis
  
  Weekly technical analysis
Charts
Basic terms
Education
Calendar
Contact

Friday, May 15 2015

Despite RBA's wish for lower exchange rates the AUD sentiment has improved due to weaker than expected recent US data, especially Retail Sales figures. This rebound is in line with the RBA’s steady outlook and the iron ore price recovery. Despite cutting interest rates this May the Reserve Bank of Australia still has a fight on its hands – trying to manage a strong Australian dollar. On the other hand the US dollar is forecasted to remain soft over the course of the coming month by Australia’s Westpac bank who says the currency remains overvalued.

However, we believe that this rebound in Aussie is only of a short-term basis. The rise of the AUD continues to have a negative impact on the economy and RBA Governor Stevens was forced to act. Commodity currencies are struggling after the USD has lost the impressive pace it held last year. The minutes from the RBA latest meeting, which are scheduled for a releases next week, can help the currency to trade lower to boost the competitiveness of its exports.

Aussie fell this morning and is currently being traded few points above 0.8050 level. Pair is likely to find support around 0.80 handle and resistance above 0.8130 area. Later today, in the US session, Empire State Manufacturing Index, Industrial Production and Consumer Sentiment figures are scheduled for a release.

More in this category: « US PPI fell by 0.4% in April Greek talks in focus of steadier Friday's session »

Latest from Editor

Popular

UK still likely to leave the EU with a negotiated agreement, says Number 10
A successful deal with the European Union remains the “most…
Sentix Investors Confidence rose to 14.7 in August
The summer heat in Europe is also causing economic temperatures…
German factory orders -4.0% seasonally adjusted on the previous month
Based on provisional data, the Federal Statistical Office (Destatis) reports…
China's July exports growth still seen holding up despite U.S. tariffs: Reuters poll
China's exports are expected to have maintained solid growth in…

About Us

Forex Web News is part of Rolling Capital Network providing financial consulting.

Within the Forex Web News we provide our readers with expert and timely technical analyses, fundamental analyses and news; with one aim – for our readers to make best possible financial decisions.

Forex Web News desks and analysis department follow the international markets closely and create high quality proprietary content on a both daily and weekly basis.

.

All our analysts have several years of trading and analysis experience. The Forex Web News analysis team creates daily and weekly analyses and offer forecasts regarding where they believe the markets are heading. Our readers are provided with data displayed both in texts and on graphs, providing them the fullest understanding of what is happening in the market place.

We are constantly growing our news desks and our analysis departments as we strive to broaden the content we provide to visitors of the Forex Web News.

Menu

Disclaimer

Rolling-capital.com – The company, employees, subsidiaries and associates, are not liable nor shall they be held liable jointly or severally for any loss or damage as a result of reliance on the information provided on this website. The data contained in this website is not necessarily provided in real-time nor is it necessarily accurate. All prices herein are provided by market makers and not by exchanges. As such prices may not be accurate and they may differ from the actual market price. rolling-capital.com bears no responsibility for any trading losses you might incur as a result of using any data within the Forex Web News.