Home Forex AUD/USD may extend its decline, but losses likely to be moderated

AUD/USD may extend its decline, but losses likely to be moderated

by kyngsam


It was a boring week for AUD/USD when it comes to value motion, as, after gapping decrease on the opening, it’s closing it unchanged within the 0.7610 value zone. Resilient Australian economy is set to keep providing support to the aussie, Valeria Bednarik, Chief Analyst at FXStreet, reviews.

Key quotes

“Australian resilience to the continued international disaster is an upward issue for the aussie, because the nation retains controlling COVID-19 contagions. Simply this week, information got here out {that a} case was detected in a lodge employee, leading to a five-day lockdown within the Pert space. On Friday, the nation reported simply six new circumstances, all of them quarantined in motels.”

“The primary occasion in Australia was the Reserve Financial institution of Australia financial coverage choice. As broadly anticipated, policymakers left the official money price at 0.1%, whereas policymakers reiterated that rates wouldn’t be hike till inflation reaches the central financial institution’s goal. Moreover, the central financial institution introduced it could prolong its QE program, with further bond purchases at a $5 billion tempo per week, as soon as the present program ends in three months.”

“Weekly foundation, decrease lows and decrease highs recommend that the pair will carry on falling. Technical readings point out that, whereas the momentum retains receding, bulls are nonetheless holding the grip.”

“At this level, 0.7640 is a right away resistance degree, en path to the 0.7700 determine. Features past this final appear unlikely at this level. The primary assist is the weekly low at 0.7563, with a break under it exposing December 21 low at 0.7461.”

 



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