Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
James Hyerczyk

The Australian Dollar is trading higher late in the session on Wednesday, recovering from early session weakness, amid rising hopes for further U.S. fiscal stimulus. Upbeat economic data also weighed on the safe-haven U.S. Dollar as sentiment shifted from risk-off to risk-on.

Treasury Secretary Steven Mnuchin fueled the rally in the higher-yielding commodity-linked Aussie Dollar when he struck an optimistic tone about reaching a coronavirus aid deal on Wednesday after the stalemate in Washington dragged on for weeks.

The U.S. Dollar was also pressured by favorable data. ADP’s monthly private-sector jobs count showed growth of 749,000 in September, ahead of the 600,000 expected from a Dow Jones economist survey. Additionally, pending home sales soared 8.8% in August, marking its highest pace on record, according to the National Association of Realtors survey.

At 16:54 GMT, the AUD/USD is trading .7171, up 0.0040 or +0.57%.


Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, however, momentum is trending higher. A trade through .7006 will signal a resumption of the downtrend. The main trend will change to up on a move through .7345.

The minor trend is up. This is controlling the upside momentum.

The main range is .6777 to .7414. Its retracement zone at .7095 to .7020 is a key support zone. This rally started after the Aussie formed a support base inside this zone.

The minor range is .7345 to .7006. The Aussie is currently testing its 50% level at .7176.

The short-term range is .7414 to .7006. Its retracement zone at .7210 to .7258 is the primary upside target. Trader reaction to this zone will determine the near-term direction of the AUD/USD.


Short-Term Outlook

The AUD/USD reached its first objective at .7176. If sellers come in then we could see a short-term setback to at least .7095. If buyers extend the counter-trend rally then look for a test of the short-term 50% level at .7210.

Over the near-term, the direction of the AUD/USD will be determined by trader reaction to the short-term retracement zone at .7210 to .7258. Aggressive counter-trend sellers are going to try to form a secondary lower top. Buyers are going to try to drive through the top of the zone in an effort to change the main trend to up.

For a look at all of today’s economic events, check out our economic calendar.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.