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Australia won’t be printing major economic reports this week.

This means y’all gotta keep your eyes on its counterparts and risk sentiment if you want to trade the comdoll!

Here are points you need to know if you see yourself trading the Aussie this week:

Flash PMI reports (Sept 22, 11:00 pm GMT)

  • Both manufacturing and services PMIs fell back to contraction levels in August thanks to the reimposition of lockdown measures
  • CommBank’s manufacturing PMI is expected to dip from 53.6 to 53.4 in September
  • Services PMI could also slip from 49.0 to 48.5 for the month

Risk-taking in the markets

  • Trade tensions continue to escalate between the U.S. and China, which can affect the demand for the Aussie
  • Scheduled PMI reports will show how robust the economic recoveries are in other major economies
  • Updates on rising coronavirus cases, lockdown re-imposition, and stimulus can also influence overall risk-taking and AUD’s intraweek trends
  • Powell and Mnuchin talking about the pandemic stimulus in DC can affect USD demand and the appetite for high-yielding currencies like the Aussie

Technical snapshot

  • Stochastic is flagging AUD’s “oversold” conditions against JPY and NZD
  • AUD/CAD is about to hit “overbought” status on the daily time frame
  • AUD/USD and AUD/CHF remains in neutral levels
AUD Forex Pairs Stochastic from MarketMilk
AUD Forex Pairs Stochastic from MarketMilk
  • Daily SMAs show the Aussie’s short and long-term bullish pressure against USD, CAD, and CHF
  • AUD is seeing short-term bearish pressure against EUR and GBP
  • Watch out for retracement or reversal opportunities on AUD/JPY and AUD/NZD
AUD Forex Pairs SMAs from MarketMilk
AUD Forex Pairs SMAs from MarketMilk
  • The Aussie was most volatile against the yen, pound, dollar, and the euro in the last seven days
AUD Forex Pairs Volatility from MarketMilk
AUD Forex Pairs Volatility from MarketMilk

Missed last week’s price action? Read AUD’s price recap for September 14 – 18!