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AUD/USD Forecast 19 July 2016

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AUD/USD Forecast 19 July 2016
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The pair AUD/USD collapsed under the influence of the minutes of the Reserve Bank of Australia.

Despite the fact that the text of the RBA meeting minutes was neutral, it showed that the bank expects a long weak inflation, and is concerned about the high rate of the national currency.

Investors interpreted this as an attempt to lower the rate at the next meeting on 2 August.

The oil lost 2.32% yesterday. The iron ore has lost 1.13%.

Today we expect the good data from the US. The US is to publish data on the number of housing starts in June which may reach 1.17 million against 1.16 million in May, the number of buildings permits is projected at 1.15 million against 1.14 million previously.

How to trade

We would buy put options if the AUD/USD falls below 0.75.

Asset: AUD/USD
Direction: Put
Target price: 0.75
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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