The Australian dollar had a tough week, surrendering to the strength of the US dollar and falling to fresh 21-month lows. What’s next? A mix of events awaits Aussie traders. Here are the highlights of the week and an updated technical analysis for AUD/USD.
The Reserve Bank of Australia left interest rates unchanged as expected and Australian retail sales rose by 0.3% as expected. The Australian Dollar suffered from the disappointing manufacturing PMI’s, both the official and the unofficial figures pointed to a significant slowdown. China is Australia’s No. 1 trading partner. The US Dollar enjoyed robust data, the breakout of US 10-year yields to the highest levels since 2011, and hawkish words by Fed Chair Powell, which opened the door to tight monetary policy.
AUD/USD daily graph with support and resistance lines on it. Click to enlarge:
