AUD/USD: outlook for August 22-28
AUD/USD once again failed to get above 0.7755. Close below 100-day MA at 0.7625 will increase bearish pressure on the pair pulling it down to 0.7530/00.
Good Australian labor market data failed to trigger sustainable buying of Aussie. Moody’s Investors Service lowered its outlook on Australia’s banks to negative from stable, warning of sluggish profit growth.
Next week apart from Jackson Hole Symposium watch Australian construction work done on Wednesday. Aussie was supported in the past week by the rally in stocks and commodities. However, as markets price in a greater chance of Fed tightening at the September meeting, risk sentiment and equities may come under pressure which would be negative for Australian currency.