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

Deteriorating risk sentiment and a dovish central bank outlook are weighing on the Australian Dollar on Thursday. Economists at Westpac changed their view and are now expecting the RBA to lower interest rates to 0.10% from 0.25% at its next policy meeting on October 6. Earlier in the week, the tone for the Aussie was weakened after a senior central banker on Tuesday flagged the prospect of currency market intervention and negative interest rates.

At 08:31 GMT, the AUD/USD is trading .7045, down 0.0027 or -0.39%.


Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. The downtrend was reaffirmed early Thursday when sellers took out the July 24 main bottom at .7064. A trade through .7345 will change the main trend to up.

The AUD/USD is down six sessions from its last main top at .7345, which means we have to start watching for a potentially bullish closing price reversal bottom.

The short-term range is .6777 to .7414. Its retracement zone at .7096 to .7020 is currently being tested. Trader reaction to this area should determine the near-term direction of the Aussie pair.

The main range is .5510 to .7414. If .6777 fails then traders should brace for an eventual break into its retracement zone at .6462 to .6237.


Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the AUD/USD on Thursday is likely to be determined by trader reaction to the short-term Fibonacci level at .7020.

Bearish Scenario

A sustained move under .7020 will indicate the presence of sellers. The daily chart indicates there is plenty of room to the downside so we’re likely to see an acceleration to the downside with the next target the main 50% level at .6462.

Bullish Scenario

A sustained move over .7020 will signal the presence of buyers. The first upside target is the short-term 50% level at .7096. This is a potential trigger point for an acceleration to the upside.

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.