Home / Forex & Currency Exchange News / Australian dollar looks weaker on commodity falls

Australian dollar looks weaker on commodity falls

Article by ForexTime

The Australian dollar has been doing okay against the USD in recent times on the back of the commodity boom that has been promising. However, there have been some minor hiccups so far with iron ore prices dropping 4.4% overnight on the Asian exchanges. This in theory could present some minor problems for the Australian dollar as exporting of minerals and metals plays a significant impact on the economy. What is most interesting though is the relation to the NZD, with the AUDNZD being a key focus for traders at present. The NZ economy continues to remain robust and it’s commodity based exports have seen some value in recent times with the global dairy auctions as of late. Add in the fact that the recent services PMI was also positive and you have a strong combination for the NZ economy and of course the NZD. The Reserve Bank of New Zealand is also undergoing some reforms but so far these have not frightened of the market.

So for the AUDNZD it’s a case of the bigger neighbour struggling against the smaller one on the currency chart. So far we’ve got a strong trend line pushing the bears down the chart and stopping and bullish activity taking hold, add into the mix a very strong support level and it’s likely we will see some volatility look to break out of the flag pattern here. Resistance can be found at 1.0933 and 1.0982 on the charts, but I would be mainly focused on the trend line which will likely stop any bulls becoming too aggressive. Support levels are looking interesting, with 1.0855 the level to beat for the market as this is a strong level, anything through this could touch on 1.0809. Going below any of these levels could be a hard mask for the market though at present as the AUD is a bigger economy, so it could dig itself out of a hole compared to its neighbour. It’s also worth remembering that the AUDNZD is at a low when you look over a very long time frame.

Once again it’s been another great day for US equity markets as they climbed the charts hitting record highs again. So far the S&P 500 is not looking like it will stop and the NASDAQ continues also to be a great runner as well. For the bulls it seems that the Trump effect is shining on further more in these markets.

Looking at the S&P 500 and it has climbed up to resistance at 2850 before taking a breath. Expect markets to look to tackle the level again tomorrow if there are no curve balls. Any extension above 2850 is likely to find some further resistance at 2875. Markets will also be looking at possible support levels as well, and they can be found at 2825 and 2809 in the current market climate.

Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.


Forex-Time-LogoArticle by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

Click Here For Original Source Of The Article

About Louie Lewis

Louie Lewis
Successful forex trading starts with you first. Then comes the actual strategies and techniques. I have been involved with forex and forex trading for a few years now. It is a wonderful way to build wealth. The learning never stops and I want to help others along their journey into this wonderful market of opportunity.

Check Also

Silver Eagle Sales Surge In September

By Money Metals News Service The sales of Silver Eagles surged in September as the U.S. Mint removed their temporary supply restriction. As the silver price continued to trend to new lows at the beginning of the month, several large purchases of Silver Eagles by the Authorized Dealers wiped out the inventory at the U.S. […]

Leave a Reply

Your email address will not be published. Required fields are marked *

css.php