The AUD/USD has been on running into overhead resistance recently with 0.7300 causing a fair few issues.
The week ahead looks like a massive one for the AUD/USD with a number of key data points and the recent news of China and the US looking to work together on a deal on trade.
The news that was just released in a statement from President Trump, suggest we might have a risk-on feel to start the trading week. When we’ve had some positive news on China recently, that has lead to a bit of a rally in the AUD/USD.
Couple that with the fact that there are a number of big economic data points and anything is possible for the Aussie.
The major releases of note are the RBA interest rate decision on Tuesday. However, there is really not much of a chance of a rate hike. However, GDP will perhaps cause a bit more volatility and it is an important metric looking forward for the RBA. We’ve already seen weak construction data which will likely weigh on that figure. We also have retail sales just to add to the mix.
And of course, being the first week of the month we get US non-farm payrolls on Friday. The USD could well weaken early in the week given the trade headlines and it might be left to the employment figure to prop things up.
Going into the week, I’m going to be quite bullish here and look for some upside to come on Monday. That is very much assuming the market takes the trade news as a positive development.
There’s quite a bit of resistance all the way up to 0.7500, with the next target being 0.7350.