The Australian military was sent to enforce a lockdown in Sydney where residents are forced to stay inside for an extended period of time as cases spike. This quarantine period has been scrutinized because of their failure to contain the number of cases while people are inside.
The fact Australia has to shut down again is a good thing for public health but not for the economy and the buck. Although the US dollar looks weaker after the Fed news on Wednesday where they said interest rates will stay low for a long time and tapering will not happen any time soon, Australia's economy is taking a step backwards. Against most major currencies, the buck now looks much weaker.
AUDNZD fell under the lows on the 1D chart and now could be heading towards further lows around 1.04299. If price does bounce at this level, we could expect a lower high to form on the daily chart.
AJ retraced off its 200 DMA paired with a resistance level which looks like a tough level to break above. The pair tried to test it a second time but ended up coming back down again. If the pair makes a lower low on the 1D, it could signal more of a bearish move next week.
AC broke under support on the 1H and 4H timeframes and tried to test that level before pulling back again. Price is currently on long term support from November of 2020, so a break under this level would probably mean a drop to the .90637 level.
This pair looks increasingly bullish on the 4H as price hits higher lows and highs while forming a stairstep upward. Support around 1.61002 should price dip before attempting a higher high. The pair's recent break above its long term channel is also a bullish sign for the pair.
9/17/2021 Stocks are down -0.58% this morning after coming down to test a significant level of support once again. While stocks fall, the dollar rises in the anticipation of sooner-than-expected tapering by the Fed along with a hike in interest rates starting in 2022. Our outlook Other than September being one of the worst months […]
9/16/2021 The Euro-Dollar pair is down over 0.5% today after several days in the red. Today's speech by EU president Lagarde mentioned how the economic recovery had come quicker than expected six months ago. This was praised by the prompt vaccine distribution so citizens could get back to work. Across the pond, the US just […]
9/14/2021 This morning's report on CPI m/m and core CPI m/m came in at a lower percentage than expected which resulted in a falling dollar pre-New York session. The USD is now volatile under the uncertainty of potential tapering and rising rates while the equities market seems to be rising because of this. Our outlook […]
9/13/2021 Big money has been moving out of Australia's currency for nearly a month now which has been the biggest drop in long contracts in this amount of time year-to-date. Australia's dollar index (AXY) is up 0.06% at 73.61 on the day after rebounding from the lows around 71.19. Our outlook Australia's economy has surprised […]