AUDUSD is maintaining a cautious stance at the level of 0.64502, following its first weekly increase in seven weeks.

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for FREE REGISTER to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level1)]

• AUD/USD remains defensive after the first weekly gain in seven.

The pair currently trades last at 0.64502.

The previous day high was 0.6522 while the previous day low was 0.6438. The daily 38.2% Fib levels comes at 0.647, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.649, expected to provide resistance.

AUD/USD struggle to extend the first weekly gain in seven as it stays pressured around 0.6450 during the early hours of Monday’s Asian session. The pair’s latest weakness could be linked to Friday’s upbeat US jobs report and the weekend headlines suggesting the US-China jitters. However, expectations of witnessing upbeat employment bill from the Government and China stimulus keep the buyers hopeful.

That said, Australia’s Labor government will introduce legislation to close “loopholes” in workplace law, a move opposed by employer groups fearing higher costs, when parliament returns on Monday per Reuters. The bill will push the employers toward paying more and can help fuel the inflation, which in turn may keep the Reserve Bank of Australia (RBA) hawks on the positive side.

Elsewhere, China President Xi Jinping showed readiness for more collaboration with the international players of the services industry.

During the last week, China’s Caixin Manufacturing PMI for August rose to 51.0 versus 49.3 market forecasts and 49.2 previous readings. On the same line, China’s official NBS Manufacturing PMI for August rose to 49.7 versus 49.4 expected and 49.3 previous readings. However, the Non-Manufacturing PMI came in as 51.0 compared to 51.5 prior readouts and market forecasts of 51.1.

On a different page, China’s central bank, namely the People’s Bank of China (PBoC), announced a heavy cut to its foreign exchange reserve requirement ratio (FX RRR) to 4% from 6.0% effective from September 15.

That said, a slew of China banks cut interest rates on Yuan deposits to ease the pressure from lower mortgage rates announced previously. Among them, ICBC, China Industrial Bank, Agricultural Bank of China and Bank of China (BoC) gained major attention.

Additionally, Reuters cited four people familiar with the matter to report that China is likely to step up action to revive the country’s property sector.

Looking forward, today’s Australian government’s push for more wages will entertain the AUD/USD traders amid the US holiday. However, major attention will be given to this week’s monetary policy meeting of the Reserve Bank of Australia (RBA) and the second-quarter Gross Domestic Product (GDP) for clear directions, not to forget the US ISM Services PMI for August.

A failure to cross a horizontal resistance surrounding the 0.6500 round figure, comprising levels marked during late May and early June, keeps the AUD/USD bears hopeful.

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.645 at the time of writing. Pair opened at 0.6453 and is trading with a change of -0.05 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6465, 50 SMA 0.6606, 100 SMA @ 0.6643 and 200 SMA @ 0.6721.

The previous day high was 0.6522 while the previous day low was 0.6438. The daily 38.2% Fib levels comes at 0.647, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.649, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.642, 0.6388, 0.6337
• Pivot resistance is noted at 0.6504, 0.6555, 0.6587

[/s2If]
Download Nehcap EAWe have two EAs that are operational on our LIVE accounts.

1. EA-FIX: Check out the details here. Download EA-FIX . EA-FIX is a non-grid HFT scalper.
2. EA-GROWTH: High quality low dd EA using trend grids. Download EA_GROWTHJoin Our Telegram Group

Share this:

• Facebook
• X

Like this:

Like Loading...