Australian Dollar: USD/AUD (AUD=X) trade tensions ease again

Australian Dollar: USD/AUD (AUD=X) trade tensions ease again

Australian Dollar: USD/AUD (AUD=X) trade tensions ease again

The Australian dollar is rocketing higher in Asian trade, boosted by signs of a continued thawing in trade tensions between the United States and China.

According to the South China Morning Post, Chinese vice-premier Liu He will travel to the United States ahead of the G20 leaders summit in Argentina later this month, sparking optimism that a potential trade deal between the two sides could soon be reached.

The meeting, should it occur, would come before a scheduled meeting between Donald Trump and Xi Jinping on the sidelines of the G20 leaders meeting in Argentina later in the month.

Despite the lack of specifics, and having been disappointed on countless times before, traders have latched onto the news, bidding up the Australian dollar and other major and regional currencies on the report.

The AUD/USD currently trades at .7211, just off the session high of .7216. The AUD/USD had fallen to as low as .7165 in early trade.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 0.73.

The projected lower bound is: 0.71.

The projected closing price is: 0.72.

Candlesticks

During the past 10 bars, there have been 5 white candles and 4 black candles for a net of 1 white candles. During the past 50 bars, there have been 26 white candles and 23 black candles for a net of 3 white candles.

Momentum Indicators

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.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 27.2947. This is not an overbought or oversold reading. The last signal was a sell 3 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 55.25. 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 135 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 42. This is not a topping or bottoming area. The last signal was a sell 3 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 22 period(s) ago.

Rex Takasugi – TD Profile

FOREX AUD= closed down -0.000 at 0.722. Volume was 99% below average (consolidating) and Bollinger Bands were 31% wider than normal.

Open High Low Close Volume___
0.722 0.722 0.721 0.722 692

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 0.72 0.72 0.75
Volatility: 13 10 10
Volume: 111,482 110,366 104,789

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.

Summary

FOREX AUD= is currently 3.2% 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 6 periods.

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