Australian Dollar: USD/AUD (AUD=X) Claws Back Losses as Iron Ore Prices Rise
The Australian Dollar US Dollar (AUD/USD) exchange rate has been volatile over the past twenty-four hours, and is currently trading at a rate of $0.7234 with the ‘Aussie’ making an attempt to push back against the ‘Greenback’.
Tuesday saw iron ore spot markets claw back some of their losses after slumping more than 8% at the start of this week’s session.
Figures released this morning showed that Australian construction work completed in the third quarter dropped by more than expected, from 1.6% to -2.8%, despite a predicted drop to only 1.0%.
AUD/USD Exchange Rate Volatile in Wake of Today’s US Data Releases
The US annualised Gross Domestic Product (GDP) is set to be released this afternoon, with the prediction that the figure is going to remain steady at 3.5%, which could mean ongoing USD strength.
Jerome Powell, chair of the Federal Reserve is set to give a speech this evening, and depending on whether his tone is dovish or hawkish, USD could push back against the ‘Aussie’ or slump further.
Australia is set to see the Housing Industry Association’s new home sales figures for October, which was reported to be 1.1% last month, and if there is an increase in this figure this will likely reflect positively in the Australian Dollar.
Overall, the bias in prices is: Upwards.
By the way, prices are vulnerable to a correction towards 0.72.
The projected upper bound is: 0.74.
The projected lower bound is: 0.72.
The projected closing price is: 0.73.
A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 52.8845. This is not an overbought or oversold reading. The last signal was a sell 6 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 60.09. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 145 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 106.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 6 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 3 period(s) ago.
Rex Takasugi – TD Profile
FOREX AUD= closed up 0.009 at 0.731. Volume was 5% above average (neutral) and Bollinger Bands were 33% narrower than normal.
Open High Low Close Volume___
0.722 0.733 0.722 0.731 116,117
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 0.73 0.72 0.74
Volatility: 13 11 10
Volume: 121,302 118,006 105,791
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
FOREX AUD= is currently 1.5% below its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into AUD= (mildly bullish). Our trend forecasting oscillators are currently bullish on AUD= and have had this outlook for the last 16 periods.
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