AUD/USD: outlook for August 15-21
AUD/USD made two attempts to take out resistance in the 0.7755 area, but sellers didn’t allow the bulls to overcome this obstacle. However, the trend remains bullish. Above 0.7765 the next resistance will be at 0.7840 (resistance line from 2013). Support is at 0.7600.
Relatively higher yields make Australian dollar attractive for investors. As long as the market’s risk sentiment remains strong, it will be in demand. In addition, the Reserve Bank of Australia’s Governor Stevens didn’t hint on further interest rate cuts – another supporting factor for AUD.
There’s however, one worrying spot: China’s imports fell 12.5% in US dollar terms in July. The nation’s industrial production and retail sales were also a bit weaker than expected. This creates a concerning background for Aussie, as China is Australia’s biggest trading partner. In Australia’s economic calendar pay attention to monetary policy meeting minutes on Tuesday and labor market figures on Thursday.