I last spoke about the AUD/USD two months ago,
Price is range bound. If price breaches and closes above 0.75000, price will head North to the daily supply zone at 0.76000. If price breaches and closes below 0.7300, price will head South to the daily demand zone at 0.71500.
The ongoing trade war dispute between the US and China continues to put pressure on the Australian Dollar. Trump administrations plans to impose additional tariffs on Chinese goods and China plans to retaliate. As a result, the price of the AUD/USD is sitting in the daily demand zone at 0.7150 now.
The last time price was this low was back in January of 2016. I don’t anticipate the Reserve Bank of Australia raising interest rates any time soon. In July the RBA extending putting interest rates on hold at 1.5% for the 21st meeting due to international trade policy in the US, emerging market economy strains and a soft housing market in Australia. On the flip side, in the US, last Friday’s jobs report was pretty good. As a result, the US Fed is likely to raise interest rates on two more times this year, including a 25-basis-point hike on Sep. 26. With sellers waiting at 0.7200 and 0.7350,
the chart suggests the AUDUSD is going at least another 200 pips lower to the monthly demand at 0.69500.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
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by rollandthomas
i concur with your analysis...clear charts and simple overview...thanks man i will go short all along