
AUDUSD Technical
The level
of 0.96 represents a major support for the AUDUSD pair, and last night it
broke through that to settle this morning around 0.9550. The overall trend is
very definitely down although the pair has a number of residual levels of
support in this region before it is plain sailing down to the next major
support, around 0.87. After that there is nothing at all, technically, to
stop it reaching for 0.80.
On the
fundamentals, the IMF has cut China ’s
growth forecasts for this year and next, to 7.75% from 8.0%. This is blamed on
lower Chinese exports. As so much of the Australian economy is tied up in the
export of commodities to China , particularly Iron Ore, when that great nation sneezes it can truly be said that Oz catches cold. When
it is also considered that commodity prices are falling globally and that Australian monetary authorities are concerned about the effect the strong AUD is having on the part of the economy that is outside of mining, the
fundamental outlook for the AUD is bearish in the extreme.
Algorithmic
trading
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