Australian Dollar: USD/AUD (AUD=X) enjoying an upbeat jobs report and a focus on others’ troubles
The Australian dollar stabilized on higher ground, enjoying an upbeat jobs report and a focus on others’ troubles. The Reserve Bank of Australia stands out in the upcoming week. Here are the highlights of the week and an updated technical analysis for AUD/USD.
Australia enjoyed a gain of no less than 32.8K jobs in October and the unemployment stuck to 5%. The encouraging figures supported the Aussie. In the US, data was somewhat disappointing with small misses on retail sales and inflation. On the other hand, talks between the US and China are making some progress and this is positive for the A$. The Australian Dollar also benefitted from a focus on Brexit, which hurt the pound, impacted the euro and also moved the safe-haven yen, but left the Aussie unscathed. Late in the week, several Fed officials such as Clarida, Kaplan, and Harker, expressed concerns about the global economy and seemed in no rush to raise interest rates. The US Dollar suffered.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 0.74.
The projected lower bound is: 0.72.
The projected closing price is: 0.73.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white 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 89.3661. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 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 62.28. 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 138 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 133.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 buy 25 period(s) ago.
Rex Takasugi – TD Profile
FOREX AUD= closed down -0.002 at 0.731. Volume was 97% below average (consolidating) and Bollinger Bands were 53% wider than normal.
Open High Low Close Volume___
0.732 0.733 0.730 0.731 2,838
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 0.73 0.72 0.74
Volatility: 10 10 10
Volume: 117,763 112,796 105,135
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 1.9% 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 volume flowing into and out of AUD= at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on AUD= and have had this outlook for the last 9 periods.
Latest posts by HEFFX Australia (see all)
- Alphabet Inc. (NASDAQ:GOOG) Targets Shoppers, Eyes Amazon Turf - May 23, 2019
- Alibaba Group Holding Limited (NYSE:BABA) stock now trades at less than a 50 P/E, a buy call feels like a no brainer - May 23, 2019
- Dow Jones Industrial Average (.DJI) extended losses after the minutes of the latest Federal Reserve policy meeting seemed to confirm that interest rates will remain on hold - May 23, 2019