Weekly Outlook for The AUD/USD
Rowan Crosby • 1 min read
As we enter the final major trading week of the year, there is still a little bit of data floating around. For the AUD/USD, we have the RBA meeting minutes, which will have a big say in how we finish the year.
Overall we are expecting positive sentiment to come out of the RBA. I suspect they feel the economy is on the improve. However, there are still issues with inflation and there appears to be a turnaround in the red-hot housing market.
Last week there was an improving outlook for jobs and by all reports, we should start seeing rate increases in the latter half of 2018.
Anything less will likely see the AUD fall. Later on Tuesday, there is also more potential for the US top pass their tax cuts. This will certainly rally the USD and put pressure on the AUD/USD.
The way I would like to trade this would be to sell a bounce on a positive outlook from the RBA. That might push us back up to the 0.7700 level. Then as the tax cuts get closer to reality we have got a good price on a short entry.
Of course if we get a dovish RBA then I expect we might have already seen the short-term top and the downtrend will continue.