{"id":59843,"date":"2014-09-04T09:30:44","date_gmt":"2014-09-04T13:30:44","guid":{"rendered":"http:\/\/countingpips.com\/?p=59843"},"modified":"2014-09-04T08:15:00","modified_gmt":"2014-09-04T12:15:00","slug":"audusd-where-to-now","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2014\/09\/audusd-where-to-now\/","title":{"rendered":"AUDUSD: Where to now?"},"content":{"rendered":"
September 4, 2014<\/div>
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Article by ForexTime<\/a><\/p>\n

It could be suggested that the AUDUSD has encountered a round of volatility so far this week. A dovish Reserve Bank of Australia (RBA) Monetary Policy Statement in the early hours of Tuesday morning expressing that an overvalued domestic currency was hindering Australia\u2019s economic transition away from mining investment, led to a subsequent near 60 pip decline in the Aussie.<\/p>\n

The pair has since recovered losses and even posted additional gains, albeit in a delayed manner. Following the Wednesday morning Australian GDP release, there appeared to be some initial unease from investors to purchase the Aussie. This was likely linked to the RBA\u2019s previous warnings from as far back as April proving to be somewhat accurate. Back then, the Central Bank surprised with an announcement that Australia was set to enter a weaker period of economic growth. Quarterly economic growth in Q2 was 0.5%, in contrast with 1.1% in Q1.<\/p>\n

However, annualised economic growth was recorded at 3.1% with GDP expansion beyond 3% considered robust for a developed economy. Although it was a delayed reaction, investors clearly looked favorably on the annualised statistics and resulted in Aussie appreciation as Wednesday\u2019s trading progressed.<\/p>\n

There was more positive news from Australia overnight, with retail sales expanding by 0.4% on a monthly basis in August. This increased optimism that the Australian economy can still build up a domestic reliance, while dispelling concerns that the latest Australian unemployment rate being announced at a decade high might lead to a decline in domestic expenditure.<\/p>\n

Despite this, there are now signs of profit taking place among investors.<\/p>

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Thursday\u2019s Aussie decline is perhaps due to an acceptance that the RBA will continue to attempt to devalue the AUD. Nonetheless until we see consistently alarmingly weak economic data from Australia, such another employment report, it is going to be difficult for investors to accept that the significant drop in the AUD that Governor Stevens has warned about is forthcoming.<\/p>\n

In the meantime, there looks to be a heightened likelihood that the Aussie will continue to consolidate between the 0.9380 and 0.9238 range that has been teased since the beginning of August.<\/p>\n

Written by Jameel Ahmad, Chief Market Analyst at FXTM.<\/strong><\/p>\n

For more information please visit: Forex Time<\/a><\/strong><\/p>\n

Disclaimer:<\/b> The content in this article comprises personal opinions and ideas and should not be construed as containing personal and\/or other investment advice and\/or an offer of and\/or solicitation for any transactions in financial instruments and\/or a guarantee and\/or prediction of future performance. ForexTime Ltd, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability as to any loss arising from any investment based on the same.<\/p>\n

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Article by ForexTime It could be suggested that the AUDUSD has encountered a round of volatility so far this week. A dovish Reserve Bank of Australia (RBA) Monetary Policy Statement in the early hours of Tuesday morning expressing that an overvalued domestic currency was hindering Australia\u2019s economic transition away from mining investment, led to a […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-59843","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/59843","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=59843"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/59843\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=59843"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=59843"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=59843"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}