China, one in all Australia’s largest buying and selling companions, is dropping one other set of financial knowledge!

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

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

Earlier than you try the setup, ensure you 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 bought rejected on the .6800 main psychological degree earlier than dropping all the best way to its present .6650 degree.

The pair has additionally damaged beneath the .6680 mid-range assist zone, which opens up a transfer right down to the .6580 vary assist space that held not less than twice since March.

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

China – one in all Australia’s largest buying and selling companions – is printing a bunch of top-tier financial indicators this week. Knowledge misses referring to manufacturing and consumption might reignite considerations over the tempo of post-COVID world 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 on holding charges greater for longer, whereas markets are already pricing in a pause or an rate of interest reduce this 12 months.

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

Earlier than you promote AUD/USD like there’s no tomorrow, you must also observe that Stochastic is already exhibiting 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 assist!

For now, I’ll be in search of shorting alternatives till AUD/USD hits .6580. Then, I’ll be taking a look at China’s knowledge 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 variety bounce.

What do you suppose?