Is the AUD/USD Set for More Downside?
Rowan Crosby • 1 min read
The AUD/USD has a reasonably quiet week ahead of it on the data front. As a result, the price action will again likely be dominated by the path of the USD.
A big jump in the Greenback on Friday helped push the AUD/USD lower and so far this week we are relatively flat in Asian trade.
The major data release of note this week is the RBA Minutes. However, there really hasn’t been much to say of recent times. One of the key areas of interest is again Australian housing.
We’ve seen a number of banks raise rates out-of-cycle which is keeping pressure on the RBA to leave rates low. We are already seeing more signs of slowing housing prices and if rates do keep rising that is going to heap the pressure on buyers. While it’s not the real job of the RBA to worry about housing prices. They also don’t want to crash the economy by pushing up rates.
The AUD/USD is now above the major level of 0.7100 and we are really trading between that point and 0.7200.
The downtrend and channel is still clearly in place. And I suspect that will continue.
I am looking at another test of 0.7100 this week. There isn’t a heap of data from the US to worry about. But of course, the trade sagas will dominate price action this week in the US.