AUD/USD Forecast October 22-26 – No Reasons To Rise -

AUD/USD Forecast October 22-26 – No Reasons To Rise

Oct 21, 2018Jeremy ParkinsonFinance0

The Australian dollar was hit by an unimpressive job report and disappointing Chinese GDP. What’s next? Apart from rising and falling with the woes of stock markets, speeches by several RBA officials will rock the Aussie. Here are the highlights of the week and an updated technical analysis for AUD/USD.

Australia gained only 5.6K positions in September, worse than had been expected. And while the unemployment rate fell to 5%, it was only thanks to a slide in the participation rate. China, Australia’s No. 1 trading partner, grew at an annualized rate of 6.5%, also below expectations, and raising concerns for the broader global economy. The Australian Dollar ended the weak on the slightly lower ground but never went too far.

AUD/USD daily graph with support and resistance lines on it. Click to enlarge:

Guy Debelle talks: Monday, 2:00, Monday, 22:35, and Tuesday, 4;30. The RBA Assistant Governor will speak in two separate events in Sydney. He will have the opportunity to react to the slowdown in jobs, the slowdown in Sydney’s house prices, and the slowdown in China’s economy. Will he hint about a rate cut? The central bank did not change the interest rate for over two years.

CB Leading Index: Monday, 14:30. The Conference Board’s composite index is comprised of seven separate economic gauges. It advanced by only 0.1% in July and we could see a similar figure in August.

Michele Bullock talks Tuesday, 4:30. The RBA Assistant Governor for Financial Markets will also speak in Sydney. She will a speech at the at the International Swaps and Derivatives Association Annual Australia Conference, in Sydney and may also refer to the recent economic developments.

*All times are GMT

AUD/USD Technical Analysis

Aussie/USD traded around the 0.7150 level (mentioned last week) but could not conquer it.

Technical lines from top to bottom:

0.7480 capped the pair in mid-July and defends the round 0.75 level. 0.7420 capped the pair twice in mid-July. 0.7360 was a low point in mid-July.