The Australian Dollar remained weak against all its rival during last week’s trading session after the Reserve Bank of Australia remained dovish in its last meeting on Tuesday.
Meanwhile, the greenback also remained under pressure after the Fed gave no indication of when interest rates could start to rise at the conclusion of its two-day meeting on Wednesday. In addition, the Fed’s forecast of where interest rates might reach in the long term fell from 4% to 3.75%.The central bank cut its bond purchases by $10 billion a month, to $35 billion, saying there was “sufficient underlying strength” in the U.S. economy to continue tapering.
Technically the AUD/USD is in a range bound as the pair found resistance at 0.94370 and supports at 0.93215 which makes the weekly bias neutral as at now since we are having a weak Australian dollar and a mild weak U.S dollar. However due to a dovish outlook by the RBA i will be favoring a sell off of the pair to around 0.93215 supports and a break of such support might bring further fall to 0.92550 psychological zones. I will only suggest buying the pair if we get a clear break of 0.94609 resistance which might bring further rise to 0.95428.
Investors would be taking a close look at the China HSBC Flash Manufacturing PMI scheduled to be released on Monday at the beginning of the week. This might provide a good trading opportunity in the pair by weakening or strengthening the Australian dollar against all its rival. Other economic indicators to watch out for is the U.S Core Durable goods, CB Consumer Confidence, Existing Home Sales, and New Home Sales.