The Australian dollar is mostly flat today. While the currency is higher against the US dollar, this is mostly the result of broad USD weakness. AUD/USD continues to significantly overbought on a daily chart, and looks due for a short-term correction. The Australian dollar is flat against the Japanese yen, the euro and the British pound. Looking at the Chinese yuan, the currency continues to make gains against the US dollar. USD/CNH is currently trading below 6.39. As China is Australia's largest export destination, the Aussie tends to closely track developments in Chinese financial markets. Our short-term and medium-term outlook on the currency remains bullish.
AUD/USD is up and trading just above 0.8020. EUR/AUD is flat and trading above 1.5350. GBP/AUD is up and trading above 1.7520.
There is no significant economic data relating to the Australian dollar this week. Last week, new employment numbers were significantly ahead of expectations.
As the Australian dollar strengthens, we are upgrading the currency to bullish. Looking at a daily chart of the Aussie, the currency is 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.