China, considered one of Australia’s largest buying and selling companions, is dropping one other set of financial information!

Not solely that, however the FOMC gang can be throughout our charts this week as a few members share their coverage biases and possibly give clues on their subsequent voting choices.

Will this week’s occasions push AUD/USD from its vary? Or will the sample maintain?

Earlier than you take a look at the setup, be sure to know all of final week’s main market movers in addition to this week’s potential market catalysts!

AUD/USD 4-hour Foreign exchange Chart by TV

Final week was NOT a great week for AUD/USD, which acquired rejected on the .6800 main psychological deal with earlier than dropping all the way in which to its present .6650 ranges.

The pair has additionally damaged under the .6680 mid-range help zone, which opens up a transfer all the way down to the .6580 vary help space that held at the very least twice since March.

Let’s see if AUD bears have sufficient momentum to hit the earlier help ranges.

China – considered one of Australia’s largest buying and selling companions – is printing a bunch of top-tier financial stories this week. Knowledge misses regarding manufacturing and consumption might reignite considerations over the tempo of post-COVID international financial restoration.

In the meantime, a bunch of FOMC members are scheduled to provide speeches. Judging by Bowman and Williams’ statements final week, Fed members are nonetheless fairly hawkish when markets are already pricing in a pause or an rate of interest lower this yr.

AUD/USD might drop by one other 50 or so pips and truly hit the .6580 help space.

Earlier than you promote AUD/USD like there’s no tomorrow, you also needs to observe that Stochastic is already displaying an “oversold” sign.

Till we see China’s numbers, or till we hear extra hawkish FOMC statements, AUD/USD might pull again a few of its losses and retest the mid-range zone.

AUD/USD might even retest .6750 with out hitting the .6580 help!

For now, I’ll be searching for shorting alternatives till AUD/USD hits .6580. Then, I’ll be taking a look at China’s information dump and the primary FOMC audio system to see if AUD/USD can have sufficient momentum for a draw back breakout or if we will value in a spread bounce.

What do you suppose?