The Australian dollar is in no hurry to grow up
The Australian dollar on Tuesday, October 9, leaves no attempts to recover after the “failure” in tandem with the U.S. dollar in early October.
A serious test for Ozzy was previously observed strengthening of positions of American currency. The dollar was well supported the growth of profitability of U.S. government bonds. Now at the moment the dollar’s rally halted, but there is a chance it could be resumed. Perhaps, therefore, a technical rebound in AUD/USD so limited.
Today’s statistics showed that the index of sentiment in the business circles of Australia in September rose to a level of 6 points against the previous value of 5. According to the observations of NAB, has improved the conditions of doing business (16 points against 15 points in August). At the same time, decreased utilization of the production capacities – it is only 2 points (-3 points compared to the previous value). The reduction in capacity utilization can be a signal that decreases and the volume of new orders. This is not the best signal.
According to NAB, in Australia in September has worsened the business environment. While its profitability has not changed.
This week Australia will still publish the stats. So, on Wednesday, October 10, will see the light of the consumer confidence index in October. A month earlier, the indicator “fell” for 3%, now is not precluded his recovery. Friday will be the financial stability report from the RBA.
Considering the dynamics of the pair AUDUSD, it is necessary to highlight the fact of the continued development of the longer-term downtrend. The short-term picture 1-hour chart shows local corrective to stop the development momentum of the downward movement. The current level of resistance is the mark 0,7105.
After the correction is completed once the momentum of decline may be directed to the support line of the main channel of the lower – level 0,6990. Further the situation can develop according to the scenario of changing trends. The rebound from the support line could allow the pair to test the resistance line around 0,7065, and the subsequent breakout will open the way to level 0,7160