AUD/USD outlook for September 25-30
During the past week we may observe a rise of the AUD/USD currency pair.
Events from Australia made no big impact on Aussie since Reserve Bank of Australia Governor Lowe said nothing new to surprise the market. The RBA pointed out that economic growth remains in line with expectations.
If we refer to the AUD/USD chart, we will see that Aussie continues to grind its way to the upside, although with reoccurring pullbacks. It found support line at the 0.744 level and doesn’t fall further. The resistance line can be plotted at 0.76 – 0.77. We should admit that AUD experienced a rally this week due to the cautious Fed’s decision not to rise interest rate. From this, we may conclude that AUD will have a room to appreciate against USD, before the RBA becomes too worried about Aussie’s overvaluation.
Next week will unlikely make big changes to the present situation. We recommend you to focus on the RBA Assistant Governor’s speech (M. Edey) scheduled for Wednesday and keep an eye on the publication of the Chinese Manufacturing purchasing managers' index coming next week. This indicator is a private gauge of nationwide factory activity measured on the purchasing managers’ observation of the overall productivity of the Chinese economy. Economic difficulties in China coupled with poorly performing markets in metals and commodities usually negatively reflect the future of Australia's financial prospects. Don’t forget to skim through Bazooka’s news releases covering the major events of the USA, which also may influence the AUS/USD value.