AUDUSD Price Outlook - Pair Capped Below 0.7050

In today's AUDUSD price outlook, the pair was capped below the 0.7050 level by developments between the US and China on trade and its domestic outlook.

21 January, 2020 – HYCM – Although we have seen some positive AUDUSD strength in the run-up to the signing of the US-China trade deal, the price has been capped underneath the 0.7050 handle.

AUDUSD Price Outlook

AUDUSD fundamental highlight

We will need some new, fresh positive US-China trade talk on phase 2 aspect of the deal. This is needed if we are to see any more AUDUSD strength in the short term. In particular, look for headlines concerning Intellectual Property rights. This is an important issue that will be discussed in phase 2 deals.

The monetary policy minutes from the RBA’s December meeting provided a case for rate cuts ahead if incomes remain pressured. However, the RBA does not consider the current level of wage growth enough to reach their inflation goals. The employment release this week will be important for the AUDUSD pair going forward. Also, CPI data will be released on January 29.
95/100 Review
Visit Site
eToro Review
Visit Site
XTB Review
Visit Site

AUDUSD price outlook is bearish

The positive retail sales released last week have reduced the chances of a rate cut in the near term. Sadly, we can expect some negative data to start coming through due to the devastating Australian bush fires. This will impact Australian employment levels, tourism to the country, and consumption.

Therefore, as a result of a weak Q4 2019 and the expected impact of bush fires the overall outlook for the AUDUSD is bearish. Bear in mind that the RBA might cut rates to 0.25%. If that happens, then that will be the level at which QE may come into play. QE weakens a countries currency and would accelerate AUDUSD downside. Presently, I am expecting AUDUSD sellers on retracements.


CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 58% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. For more information please refer to HYCM’s Risk Disclosure.

Additionally, the content of this email is for information purposes only and it is not intended as a recommendation or advice. Any indication of past performance or simulated past performance included in advertisements published by HYCM is not a reliable indicator of future results. The customer carries the sole responsibility for all the businesses or investments that are carried out at HYCM.

Leave a Reply

Your email address will not be published. Required fields are marked *