The Australian dollar is currently mixed. While the currency has registered small gains against the US dollar and the yen today, it is currently selling off against the euro and the British pound. Looking at AUD/USD, the pair continues to look significantly overbought on a daily chart and is due for a short-term correction. The pair has run out of steam around 0.80. In the longer term, the Australian dollar should continue making gains against USD as the US dollar remains trapped in a bear market. Our short-term and medium-term outlook on the currency remains bullish.
AUD/USD is up slightly and trading just above 0.7990. EUR/AUD is up and trading above 1.530. GBP/AUD is up and trading above 1.7360.
There is no significant economic data relating to the Australian dollar this week. Last week, new employment were significantly ahead of expectations.
As the Australian dollar strengthens thanks to strong commodity prices and global growth, we are upgrading the currency to bullish. Looking at a daily chart of the Aussie, the currency is now looking overbought. This is based on various technical indicators.
As the Australian dollar rebounds, we are now bullish on the Australian dollar in the medium-term. Looking at a weekly chart, the Aussie is trading within normal conditions. Our analysis is based on various technical indicators.