The U.S dollar moved higher against the other major currencies during last week’s trading session, after positive data from the U.S. added to optimism over the strength of the country’s economy, fueling more speculation over a possible September rate hike.
However China’s atrocious stock crashing situation is still the major concerns for investors which left the market extremely volatile all through last week sending the AUD/USD pair as low as 0.7045 last week but recovered since then after finding support.
Initial bias stays neutral this week for side-way consolidations . In case of stronger recovery, upside should be limited below 0.7438 resistance and bring fall resumption. Below 0.7045 should send the pair through 61.8% projection of 0.9504 to 0.7625 from 0.8161 at 0.7000 to 100% projection at 0.6282.
In the week ahead, investors will be focusing on Friday’s U.S. jobs report for August, which could help to provide clarity on the likelihood of a near-term interest rate hike.
Markets will also be watching surveys of the U.S. manufacturing and service sectors, factory orders and trade data for fresh indications on the timing of a rate hike.
Also importantly, investors would be focusing on the Australian GDP, Interest Rate Statement, Retail Sales and Trade Balance.