Blooming Aussie economy facing bearish threat as retail sales drop

Forex Trading For Profit

Blooming Aussie economy facing bearish threat as retail sales drop

5/5 (1)

Share on...

The Aussie dollar has been trading significantly higher against most of its major rivals from the very beginning of this month. Despite the strong bullish momentum in the AUDUSD pair, the pair dropped sharply during on last week after the retails sales missed the expected 0.2% gain. Most of the leading investors in the global market are overly concern regarding the strong rejection of the critical resistance level at 0.80658.If the pairs fail to break this current resistance level then this might be the initial top for this pair. However, the weak U.S unemployment claims data released erased most a significant portion of the loss in AUDUSD pair. Though FED has hiked their interest rate for two times in the year 2017 strong doubt prevails regarding their next projected rate hike. The average hourly income of the U.S citizen also dropped by 0.1% which clearly demonstrates the sluggish performance of the U.S economy. The Aussie bulls utilized the ongoing weakness of the U.S economy and posted a strong bullish run.

Interest rate hike decision

The RBA kept the interest rate unchanged (1.5%) despite their strong economic performance from the very beginning of this year. Moreover, RBA governor Lowe gave a dovish speech, stating that they are not ready to hike their interest rate since their economy is still in the recovery phase. Such a dovish statement from the RBA governor create an extensive bearish threat to the Aussie dollar but the weakness of the U.S dollar mitigated the effect in the global currency market. Though the U.S economy is struggling hard still there is a chance of another rate hike by the end of this year. Moreover, the U.S central bank will also pressurize the FED to hike their interest rate for the third time in the year 2017.But before that, the U.S central bank have to shrink their balance sheet to mitigate the impact of U.S rate hike decision. Considering all the factors both countries are struggling hard to come up with a stable solution.

Upcoming events

Most of the leading investors are waiting for the U.S unemployment claim data release which is scheduled on Thursday. If the data comes beats the expectation then the Aussie bulls will be wiped out from the market. However, a weak data release in the U.S unemployment claim section will fuel up the Aussie bulls which will clearly confirm the resumption of a medium-term bullish trend in the AUDUSD pair. On Thursday we have Employment Change data release for the Aussie economy and if it bears the expectation then the AUDUSD pair will try for another bullish run. But if the Australian Unemployment Rate exceeds the expected 5.6% gain then the bulls will be in great trouble. These two high-impact news release is going to play a major role in the upcoming movement of the AUDUSD pair in the forex trading industry.

The decent bullish rally of the AUDUSD pair is currently facing extensive bearish threat fundamentally since the retail sales data has missed the expectations of the Aussie economist. On the contrary, there has been a sharp decline in the Aussie trade balance which clearly demonstrates the sluggish performance. Though these two factors were supposed to create a sharp decline in the AUSDUSD pair the ongoing weak performance of the U.S economy is refueling the Aussie bulls. To be precise the price movement of the AUDUSD pair is greatly dependent on the U.S economy. If the U.S unemployment claims data refuels the green bucks then a sharp decline in the AUDUSD pair is imminent since the current stance of RBA is extremely dovish despite their long-term stable performance.

forex trading

Share on...

Please rate this

Leave a Comment

Be the First to Comment!

Notify of
Photo and Image Files
Audio and Video Files
Other File Types

Forex Trading For Profit

Forex TFP

A journey of a retail trader. How to trade on the foreign exchange market and make it a lifstyle.

Comodo SSL
  • Facebook logo
  • Twitter logo
  • YouTube logo
  • Linked in logo

We have been voted in the top 100 Forex Sites


Forex Trading

Forex Trading For Profit, a journey of a retail trader. This website has been set up for retail traders to give answers to those seeking the same information I was when I first started trading. Forex Trading For profit endeavours to bring the most informative approch to trading forex, and shows anyone can become a successful trader no matter what your background, with some dedication, study and determination. Trading CFD's and in the foreign exchange market is a high risk investment so please read the disclaimer.

DISCLAIMER: Any advice or information that has been presented on this website and related accounts on social media forums is only general advice and is not intended for you to invest your money solely based on its contents. By viewing the content on this site you agree that it’s for educational purposes only and will not hold the Author responsible for any loss incurred by the content herein and associated online accounts or paraphernalia. Forex Trading for profit nor do the Author('s) operate under an AFSL and any product or advice sold on this site is only bought or taken as an educational product or guide from my collective experience’s and knowledge trading forex. If you invest any money into forex you do solely at your own risk.

HIGH RISK WARNING: Trading CFD’s such as forex and/or on high leverage is a high risk investment and you must make yourself aware of the potential loses you may incur. Forex trading is not suitable for all investors and you have the potential to lose all of your deposited funds or more. Any opinions or analysis of the financial markets on this site is ONLY commentary in nature and does not solicitate investment advice. Please do not invest any money based on the advice given on this site or associated accounts nor invest money that you cannot afford to lose. Past performance of any trading system or method is not indicative of future results.

Privacy policy

What information do we collect?

We collect information from you when you fill out the form. When ordering or registering on our site, as appropriate, you may be asked to enter your: name, e-mail address or phone number. You may, however, visit our site anonymously.

What do we use your information for?
Any of the information we collect from you may be used in one of the following ways:

For contact purposes and conversing requirements between staff and client.

How do we protect your information?
We implement a variety of security measures to maintain the safety of your personal information when you enter, submit, or access your personal information.

Do we use cookies?
We do not use cookies.

Do we disclose any information to outside parties?
We do not sell, trade, or otherwise transfer to outside parties your personally identifiable or business information. This does not include trusted third parties who assist us in operating our website, conducting our business, or servicing you, so long as those parties agree to keep this information confidential. We may also release your information when we believe release is appropriate to comply with the law, enforce our site policies, or protect ours or others rights, property, or safety. However, non-personally identifiable visitor information may be provided to other parties for marketing, advertising, or other uses.

Third party links
Occasionally, at our discretion, we may include or offer third party products or services on our website. These third party sites have separate and independent privacy policies. We therefore have no responsibility or liability for the content and activities of these linked sites. Nonetheless, we seek to protect the integrity of our site and welcome any feedback about these sites.

Childrens Online Privacy Protection Act Compliance
We are in compliance with the requirements of COPPA (Childrens Online Privacy Protection Act), we do not collect any information from anyone under 13 years of age. Our website, products and services are all directed to people who are at least 13 years old or older.

Your Consent
By using our site, you consent to our web site privacy policy.

Changes to our Privacy Policy
If we decide to change our privacy policy, we will post those changes on this page.

Contacting Us
If there are any questions regarding this privacy policy you may contact us using the information below.

Back to top

© 2019 Forex Trading For Profit. · Disclaimer · Privacy policy