Australian Dollar: USD/AUD (AUD=X) Westpac Consumer Sentiment shows deterioration in sentiment

Australian Dollar: USD/AUD (AUD=X) Westpac Consumer Sentiment shows deterioration in sentiment

Australian Dollar: USD/AUD (AUD=X) Westpac Consumer Sentiment shows deterioration in sentiment

The Australian Dollar took a steep fall in the Westpac Consumer Sentiment index in its stride Wednesday but selling the Antipodean currency is still a “top ten” investment idea for the 2019 year, according to analysts at DBS Bank who see the Reserve Bank of Australia having to delay any plans for an interest rate further in light of domestic economic data. 

Australian consumer confidence plummetted by -4.7% to 99.6 in Janauary, according to the Westpac index, which is its largest one-month fall since the September of 2015 when financial market volatility and weakening growth data cast a cloud of gloom over the economy.

The Westpac index is now sat below the key 100 level, which means pessimists are outnumbering the optimists down under, with consumers less confident in their prospects for both the short as well as long term. Consumer confidence about family finances also deteriorated notably too. 

An unfavourable shift in the bond market, brought about by a combination of RBA and other central bank interest rate policies, was responsible for much of the loss sustained by the Australian Dollar during the first half of 2018. 

Overall, the bias in prices is: Sideways.

The projected upper bound is: 0.73.

The projected lower bound is: 0.70.

The projected closing price is: 0.72.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 25 white candles and 24 black candles for a net of 1 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 36.2965. This is not an overbought or oversold reading. The last signal was a sell 2 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 53.06. 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 18 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 46. This is not a topping or bottoming area. The last signal was a sell 2 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 9 period(s) ago.

Rex Takasugi – TD Profile

FOREX AUD= closed up 0.000 at 0.717. Volume was 100% below average (consolidating) and Bollinger Bands were 12% wider than normal.

Open High Low Close Volume___
0.717 0.717 0.716 0.717 528

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

Moving Averages: 10-period 50-period 200-period
Close: 0.72 0.72 0.73
Volatility: 10 10 10
Volume: 99,944 112,592 106,897

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 2.1% below its 200-period moving average and is in an upward trend. Volatility is low 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 4 periods.

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