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AUD/USD Forecast 18 July 2016

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AUD/USD Forecast 18 July 2016
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The Aussie is under pressure from the both sides.

The strong data from Chinese housing market and the growth in property prices from 6.9% to 7.3% gives support to the Australian dollar. The commodity markets don’t show a significant increase, but not decrease.

However, the hint of the Reserve Bank of New Zealand on the lowering of rates, although the central bank meeting is still far, putting pressure on the Aussie. Also, the CPI was slightly less than the forecast in New Zealand.

The Australian government bond yields rising moderately the second day. In general, the situation can be called quiet. The further movement of the Aussie will depend on the US dollar.

The US is to publish NAHB housing market index. The forecast is unchanged.

We expect the pair AUD/USD to descend to the range of 0.7480-0.7500.

How to trade

We would buy put options if the pair AUD/USD falls below 0.7565.

Asset: AUD/USD
Direction: Put
Target price: 0.7565
Expiry time: 20:00 GMT

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.

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