AUD/USD is testing the top of a downtrend resistance!
Will the pair extend its weekly losses in the next trading sessions?
Before moving on, ICYMI, I’ve listed the potential economic catalysts that you need to watch out for this week. Check them out before you place your first trades today!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
U.S. Secretary of State Antony Blinken had “productive” talks with Chinese Foreign Minister Qin Gang, set to meet Chinese President Xi Jinping later today
NZ BusinessNZ Services Index is up by 3.2 points from upwardly revised 50.1 in April to 53.3 in May. All five measures showing expansion.
Rightmove: Asking prices for British homes fell in June for the first time in six years, thanks to higher mortgage and interest rate expectations
Asian equities and crude oil dip on profit-taking and global growth concerns as major banks downgraded their Chinese GDP estimates
Price Action News
We did not see a lot of market-moving data released during the Asian session, so traders mostly repriced their risk sentiment expectations.
AUD started Monday on a weak note thanks to major banks downgrading their Chinese GDP forecasts and other traders not seeing a lot of available satisfying stimulus options for the People’s Bank of China (PBOC) this week.
The Australian dollar eventually recovered from its intraday lows, however, and some cautious risk-takers were able to lift AUD almost close to its open prices a few hours into the European session.
Upcoming Potential Catalysts on the Forex Economic Calendar:
U.S. markets out on Juneteenth holiday
Canada’s industrial and raw materials price indices at 12:30 pm GMT
U.S. NAHB housing market index at 2:00 pm GMT
RBA’s meeting minutes at 1:20 am GMT (June 20)
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️
AUD/USD: 15-min
AUD/USD is consolidating near .6870, which isn’t surprising because it’s just below today’s Pivot Point (.6880) level and Friday’s intraday support zone.
This time around, .6870 also marks the top of a descending channel that’s been limiting AUD/USD’s gains since Thursday.
Does this mean that AUD/USD is ready for more losses?
AUD/USD’s next direction might depend on the Reserve Bank of Australia (RBA)’s meeting minutes.
If details of the last RBA meeting point to even more interest rate hikes from the central bank, then AUD/USD could bust above the resistance zone and make new weekly highs.
But if the RBA gang isn’t as hawkish as its initial statement portrayed, or if more traders worried about global (but mostly Chinese) growth in the next trading sessions, then AUD/USD could head lower.
The S1 (.6850) of today’s Standard Pivot Points looks like a good initial target for AUD bears, but AUD/USD could also drop to S2 (.6830) near today’s lows if there’s enough bearish momentum.
