Australian Dollar Uptrend Should Survive Light-Data Week

Australian Dollar Uptrend Should Survive Light-Data Week

Fundamental Forecast for a Australian Dollar: Bullish

  • The Australian Dollar has fought behind utterly easily from a “Trump trade” battering
  • The week offers a light information line-up for both Australia and a US
  • With small approaching to change investors’ minds, AUD/USD’s uptrend should endure.

The Australian Dollar is a small brief of apparent information catalysts this week. That could leave a current, new and rather bullish trend intact, if for no other reason than that investors are doubtful to see anything thespian adequate to change their minds.

There’s been a clear, new Aussie fightback from a battering handed out by a markets given Donald Trump’s election. AUD/USD tumbled from 0.77656 behind then, in late November, to 0.71573 on Dec 26. The Australian banking wasn’t alone here of course. The prevalent greenback gained on usually about all as markets eyed not usually a fiscally expanded White House, yet aloft seductiveness rates as well.

Down, yet clearly not outAUD/USD (daily chart)

Australian Dollar Uptrend Should Survive Light-Data Week

Chart gathered regulating TradingView

However, that AUD/USD low indicate looks like something of a bottom for a “Trump trade” fall. Bulls have scored estimable daily wins in a past 3 sessions, holding a span adult to a 0.73500 area.

Then there was Friday’s overwhelming Australian trade data. It repelled forecasters with a initial over-abundance for scarcely 3 years, and utterly a large one too. Trade was in a black to a balance of A$1.2 billion ($US900 million) when a A$500 million deficit had been expected.

The doubt to ask now is possibly anything on a information line-up is approaching to dissapoint a stream medium feel-good mood.

At face value a answer is “no.” We’ll get a demeanour during Australian building approvals, sell sales and credit label purchases by a week. Important yet all these things are as pixels on a bigger mercantile screen, nothing tends to be a vital Aussie showstopper.

Risks to this comparatively ease unfolding substantially come from a “USD” side of AUD/USD. It’s not a large week for US numbers either, yet a allege demeanour during essential December’s stateside sell sales, and a University of Michigan’s monthly image of consumer view both have a intensity to pierce a pair, and they don’t come until a finish of a week.

The Australian Dollar’s wildcard this week substantially comes from Chinese data, of that there is a small more. Tuesday’s consumer cost index and Friday’s trade information could see a Australian Dollar personification a someday purpose as a markets’ favorite glass China proxy.

However, presumption no surprises here, a nascent Aussie Dollar fightback should continue to reap a advantage of any doubts.

Would we like to know some-more about trading? DailyFX analysts’ webinars are a good place to start.

— Written by David Cottle, DailyFX Research

Contact and follow David on Twitter: @DavidCottleFX

About author

Gold Remains in Symmetrical Triangle

Talking Points: – Volatility in US equity markets and Gold stays high, though has been hauntingly absent from FX markets. – Gold’s exquisite triangle continues ...