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AUD/USD Forecast 5 July 2016

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

The Aussie has stopped its growth due to the weak data.

In Australia, the number of building approvals fell by 5.2% in May against the forecast of -3.6%.

However, the Aussie has grown due to the successfully formed a new Cabinet after the parliamentary elections on July 2nd.

Today we have seen that the increase of deficit in the trade balance in May: from -1.79 billion to -2.22. In May the volume of retail sales increased by 0.2%, but the forecast was more optimistic 0.3%.

The main news of the day - the announcement of the decision of the Reserve Bank of Australia. The current rate 1.75% has been maintained against the many preconditions on its decline. But the oil price is descending the second day, the industrial metals are also losing value, crops and meat futures become cheaper.

We are waiting for a decrease of the pair AUD/USD in the range of 0.7420-0.7445.

How to trade

We would buy put options if the pair AUD/USD falls below 0.7488.

Asset: AUD/USD
Direction: Put
Target price: 0.7488
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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