SEARCH

Flash: Australian dollar forecasted to decline versus US dollar, GBP-AUD pushes higher

The Australian dollar is under selling pressure as we approach the market close in London:

  • The pound / Australian dollar exchange rate is currently 1.08 pct in the blue at 1.6552.
  • The euro / Australian dollar exchange rate is 0.85 pct higher at 1.4273.
  • The Australian dollar / US dollar exchange rate is 0.4 pct down at 0.9135.

Please be aware that the above quotes are taken from the wholesale exchange rate markets - your bank will affix their own discretionary spread to the numbers. However, an independent FX provider will guarantee to undercut your bank's offer, thus delivering more currency. Please learn more here.

The Australian dollar, like just about every other currency pair across the world, rallied against the U.S. Dollar in today’s Asian trading session.

"However, the rally was relatively contained, with the AUD/USD only tacking on about 200 pips due to a weak jobs report, while pairs like the EUR/USD surged over 400 pips. With rates now putting in a clear Dark Cloud Cover candlestick formation off previous resistance at .9300, the Aussie appears ripe for a sell trade," forecasts Matthew Weller at GFT.

Weller suggests:

australian dollar rates

"Specifically, traders could set a limit sell order at .9230 with a stop at 0.9310 (above strong previous resistance at 0.9300) and a target at 0.9055 (ahead of previous support at .9040).

"Given the aggressive risk/reward ratio on the trade, readers could look to move the stop to breakeven if rates drop to .9150 (roughly half way to the target)."
The performance of AUD-USD is important for sterling watchers as GBP-AUD will follow suit.

Trade this information - identify and copy the most successful traders on the world's largest social trading setup.

Theme: GKNEWS