The Australian dollar rallied on Thursday supported by hopes for US stimulus. The Reserve Bank of Australia will update its economic forecast on Friday, which could determine whether the Aussie continues to rise.
The Aussie is also supported as rising equity markets spoke of positive global risk sentiment while higher domestic bond yields gave currencies an advantage over their US counterpart.
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75% of retail CFD investors lose money
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At 07:39 GMT, AUD / USD is trading at 0.7630, up 0.0009 or + 0.12%.
Australian yields have risen despite the Reserve Bank of Australia (RBA) extending its bond purchase program by a further A $ 100 billion ($ 76.5 billion) and projected interest rates would stay at 0.1% through at least 2024.
Daily swing chart technical analysis
The main trend is bearish according to the daily swing chart. Trade above .7564 signals a resumption of the downtrend. The main trend will change on a move up through .7764.
The main retracement zone is .7579 through .7523. This zone stopped selling on February 2nd at 0.7564.
The minor range is between 0.7764 and 0.7564. His 50% level at 0.7664 is the first upside target. Since the main trend is bearish, sellers could join the first test of this level.
The short-term range is between 0.7820 and 0.7564. The retracement zone at 0.7692-0.7722 is the primary upper target zone.
Daily Swing Chart Technical Forecast
The Aussie is currently trading between a pair of 50% at 0.7579 and 0.7664. Holding within this zone indicates investor indecision.
With the main trend down, sellers could join the first test of 0.7664. However, the overcoming shows that the purchase is getting stronger. This could extend the rally to 0.7692-0.7722 where it could encounter resistance again.
The closest downside support zone is .7579 through .7523. Aggressive counter-trend buyers could come a second time after testing in this area. However, it is also the trigger for possible acceleration downwards.
In our economic calendar you will find all economic events of today.
Will the AUD improve against the USD?
The bank has a three-month AUD / USD forecast of 0.74, rising to 0.76 over six to twelve months, and a long-term forecast of 0.77. … According to this, the AUD / USD rate will end at 0.69 in 2021 and fall down to close at 0.65 in 2022.
Will the AUD rise in 2020?
Bankers’ forecasts for the Australian dollar in 2020 will be revised later this year. … Currently, Westpac, NAB and CBA are forecasting that AUD / USD will be around 0.7200 by the end of the year. ANZ expects a value of 0.7000.
Will the AUD rise in 2021?
The Australian dollar, which hit US76. 40 ¢ overnight could rise as high as 85 ¢ by the end of next year, according to strategists at National Australia Bank. They have drawn in a range of $ 80 to $ 85 for the second half of 2021.
Why is the Australian dollar so weak?
1. The Chinese economy and the coronavirus. One of the main reasons behind the decline in the Australian dollar is the decline in commodity prices and demand for the commodities produced by Australia such as iron ore and coal.
Is SGD stronger than AUD?
The Australian dollar is currently trading at SGD 1 to AUD 1. … In other words, the Singaporean dollar is slightly stronger than the Australian dollar when it used to be the other way around. A trip to Australia for Singaporeans has been made much more affordable almost overnight.
Where is AUD worth the most?
Russia. As the largest country in the world, Russia is also the best value for money for Aussies. A Big Mac costs 110.17 rubles or around A $ 2.47.
Will the AUD ever reach parity again?
Analyzing the forecast AUD to USD survey for 2020, experts suggest that the average AUD / USD exchange rate in 2020 will be 0.6969 in the first half of 2020 and will reach 0.7000 by the end of 2020. …
Is the Australian dollar falling?
Australian dollar « falling short » For 2020 the AUD / USD risks will drop to 0.68. Analysts warn that the Australian dollar is vulnerable to new losses in the short term, which means currency risks will lag behind some previously bullish year-end projections.
Is the AUD getting stronger?
The AUD / USD exchange rate is up 30% in 4 months. … 2020 has been a rocky ride for most currencies and markets, and the Australian dollar is no different.
What is the lowest Australian dollar?
The lowest value of the dollar since it went public was 47.75 US cents in April 2001. It returned to over 96 US cents in June 2008 and hit 98.49 later that year.