Forex News: AUD/USD Weekly Commentary (Chinese) with PhillipCapital Australia – 26/05/17

Forex News: AUD/USD Weekly Commentary (Chinese) with PhillipCapital Australia – 26/05/17


Hi everyone! Welcome to PhillipCapital Australian dollar weekly wrap. My name is Bo Xin. Up till 4PM Friday, AUD is down 185 points, about 0.02%. Current price is 74.319 US cents. The Australian market lacks fundamental data this week. For US side, important data are released on Thursday and Friday. On Monday, AUDUSD movement was mainly driven by Australia. Because investors were still concerning about the political uncertainty of the US, this pushed AUD higher. On Tuesday night, Moody suddenly downgraded China rating from Aa3 to A1, which was hard to understand by most Chinese investors. Australian dollar started to drop when the news was out and lost all previous days’ gain. On Wednesday, market begun to reassess the value of Australian dollars after massive sell-off on Tuesday and AUDUSD rebounded. On Thursday morning, Federal Reserve released FOMC meeting minutes. Most investors believed the minutes was going be relatively hawkish and giving a clear indication on June’s rate hike. FOMC minutes shows that rate hike will be coming soon but whether May economic data will send positive signals needs to be taking into consideration and they may begin to shrink balance sheet in September this year After it released, US dollar started to drop and pushed AU dollar to Tuesday’s high, but it did not break through its top. During the night, OPEC and other oil exporting countries reached consensus, starting to control and cut oil daily production level. However, the level they agreed on wasn’t as low as the market expected. On the day, US oil and Brent oil were down by 5%, which made it the most one day fall in the past three months. AUD was also smashed, breaking this week’s open price and continuing its downtrend. On Friday, US will release Core Durable Goods Orders and Prelim GDP, expecting 0.4% and 0.9% respectively. From technical perspective, Australian dollar has broken the downside of the uptrend channel on Friday and is below the resistance of 0.7434. During this week, AUD has formed its double top, top resistance is 0.7512. If US fundamental data tonight is better than expectation, AUD will face further downside. Short term target is around 0.733 and long term target is around 0.7225. Thank you for watching. If you want to know more, you can contact me using the details below or visit our website at phillipcapital.com.au

Leave a Reply