AUD/USD Weekly Forecast: Hawkish RBA Fuels Rebound…

• The greenback climbed earlier within the week when tensions between Russia and Ukraine escalated. 

• The Trump commerce paused as merchants awaited new developments.

• The Reserve Financial institution of Australia maintained its hawkish tone.

The AUD/USD weekly forecast reveals a slight rebound because the RBA stays hawkish, however the pair nonetheless has draw back potential.

Ups and downs of AUD/USD

The Aussie rebounded this week because the greenback paused its Trump rally and the RBA maintained a hawkish. The buck paused this week after a powerful rally because of Trump’s win. Nonetheless, it climbed earlier within the week when tensions between Russia and Ukraine escalated. 

In the meantime, the Trump commerce paused as merchants awaited new developments. US information confirmed an sudden decline in jobless claims, reducing the probability of a December Fed fee reduce.

Elsewhere, the Reserve Financial institution of Australia maintained its hawkish tone, stating there was no hurry to decrease charges as they weren’t as excessive as in different main economies. 

Subsequent week’s key occasions for AUD/USD

Subsequent week, traders will deal with studies from the US, together with the Fed minutes, GDP, and sturdy items orders. The FOMC assembly minutes may have a complete report of the final coverage assembly, which could include clues on what policymakers intend to do sooner or later. The assembly got here proper after Trump received the US presidential election, altering the outlook for US financial progress and inflation. Consequently, market individuals will wait to see if this modified policymakers” tone.

In the meantime, the GDP report will present the well being of the economic system. Economists count on a 2.eight% improve after an analogous studying final month. 

AUD/USD weekly technical forecast: RSI divergence prompts pullback

On the technical aspect, the AUD/USD worth is in a downtrend, constantly making decrease highs and lows. Furthermore, the worth trades under the 22-SMA with the RSI underneath 50, supporting a bearish bias. The downtrend has paused on the zero.6450 essential degree after breaking under the zero.6550 help. The pause has allowed bulls to revisit the not too long ago damaged help zone.

–Are you curious about studying extra about scalping foreign exchange brokers? Examine our detailed guide-

The pullback may proceed to the 22-SMA within the coming week earlier than bears resume the downtrend. To verify a continuation of the downtrend, the worth should break under zero.6450 to make a brand new low. Nonetheless, the RSI has made a slight bullish divergence that would sign a reversal. Nonetheless, bulls should break above the SMA to substantiate a reversal. In any other case, the downtrend will proceed.

Trying to commerce foreign exchange now? Make investments at eToro!

67% of retail investor accounts lose cash when buying and selling CFDs with this supplier. You must think about whether or not you possibly can afford to take the excessive danger of dropping your cash.