A fall in commodity prices has badly hurt the Australian economy in recent years. Australia is known as a lucky country with natural resources such as coal, iron ore, and Gold. After the commodities super cycle, iron ore and coal prices have been falling very badly. Recently, gold prices added some more pressure to AUD.
Goldman Sachs expects iron ore prices to continue to fall until the second quarter of 2016.
The nuclear deal wheighs on oil prices. Lower oil prices directly affects the Canadian economy.
Ahead of the RBA governor Stevens’ speech and Wednesday’s building approvals, the cross is trading below all the moving averages.
Technical view: The cross has been trading on a bearish texture. The cross re-tested 0.9400 for three times in 15 months, but managed to close above that. The 20Dsma is found at 0.9520, 50Dsma is found at 0.9540, and 20Wsma is seen at 0.9550. Traders can keep an eye on this cross, big moves expected in coming days. A weekly close below 0.9400 opens gates for another dramatic fall. In the weekly charts, we can observe a large head and shoulder pattern. The cross has been testing the neck line for three times.
In the daily chart, the cross made a multiple top at 0.9633. For an intraday session, the cross is facing strong resistance seen at 0.9522, 0.9540, and 0.9560. Intraday support is found at 0.9449. We recommend safe selling below 0.9440 with tarhets at 0.9420 and 0.9400. Safe buying is available above 0.9570 towards 0.9600 and 0.9630.
The material has been provided by InstaForex Company – www.instaforex.com