The Australian dollar is higher against all major currencies today. AUD is currently the strongest against the US dollar, the British pound and the Canadian dollar. Yesterday, the Australian dollar was also higher. Looking at AUD/USD, the pair found support around 0.7650. While AUD has been selling off in recent history thanks to China-related fears, the currency is enjoying a relief rally today. Our short-term and medium-term outlook on the currency remains bearish.
AUD/USD is up today and trading just above 0.770. EUR/AUD is down slightly and trading above 1.60. GBP/AUD is down slightly and trading above 1.8240.
Looking at economic data relating to the Australian dollar, this is a relatively light week. HIA new home sales (-0.7% vs. -2.1% prior) were better than previous figures. RBA Assistant Governor Kent suggested that the outlook for the Australian economy was upbeat. MoM private sector credit (0.4% vs. 0.3% expected) was slightly ahead of expectations. Last week, employment changes were worse than expected.
As the Australian dollar weakens, we are downgrading the currency to bearish. Looking at a daily chart of the Aussie, the currency is trading within a normal range. This is based on various technical indicators.
As the Australian dollar runs out of steam, we are now bearish 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.