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AUD/USD Forecast 1 July 2016

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AUD/USD Forecast 1 July 2016
5/5 of 3 ratings

The Aussie, despite the aggressive strengthening of the US dollar, was stable on Thursday.

The Australian dollar has demonstrated the stability due to the commodities market and its own fundamental data.

Yesterday the iron ore added 0.25% ($51.36), the oil prices dropped slightly, but the precious and industrial non-ferrous metals showed an increase. The business activity in the manufacturing sector rose to 51.8 in June against the previous 51.0.

Today the US is to publish data on Manufacturing PMI from Markit and ISM, which are expected unchanged.

On Monday, Australia is to publish data on building permits in May. Investors expect a decline -3.9% for the month, -6.5% annualized. On Tuesday, the meeting of the RBA will be held. We have heard hints of lowering rates. We expect a decline in the pair AUD/USD.

How to trade

We would buy put options if the pair AUD/USD falls below 0.7430.

Asset: AUD/USD
Direction: Put
Target price: 0.7430
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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