AUD/USD Sitting Waiting, Bullish Reversal
|S1: 0.7800||R1: 0.8000|
|S2: 0.7730||R2: 0.8011|
|S3: 0.7700||R3: 0.8060|
The Aussie dollars continued to trade in a very tight range this week, mainly hovering in the low 78’s. China has been off all week with the Mid-Autumn Festival, partly explaining the low volatility.
The technicals have remained quite muted this week with the pair still sitting below the 14 Day MA and RSI just hovering above 30. The pair is holding above 0.78 as a resistance level with traders bidding it every time it dips into the 0.77’s.
We’ve seen a potential hammer formation develop a couple of days ago. A hammer formation is a bullish reversal pattern, which signals that we could be at the bottom of the downtrend- watch this space.
Australia’s trade surplus widened to AUD0.99bn in August, mining exports continue to show mixed trends, with iron ore exports rising 14.6% m/m in August.
Retail sales declined again, high household debt and low wage growth are likely weighing on consumer spending.
AUAs expected by all the RBA kept rates on hold on Tuesday and there were no significant changes to the statement.