Aussie’s Heads Up
Gaining 250 points against the U.S. dollar in one week is no joke, when you know that the U.S. dollar is getting stronger as the U.S. economic indicators are showing a substantial improvement in economic activities.
The Aussie was controlled by the bulls this past week where the major driving forces were the fundamentals coming from the Australian economy, where the Building approvals delighted the Australian dollar investors. Later on, the retail sales figures showed some positive sign in the past month and as well as the quarterly GDP that expanded by 0.6% in the second quarter.
AUD/USD is back in a bullish channel now and closed at the 0.9187 level, and would remain safe to buy as long as it sustains above the 0.9075 level which is its critical support point.
Euro remained in Range
The euro didn’t show much movement last week where it failed to break its strong support at its psychological level at 1.3100 and also couldn’t manage to move up the 1.3200 resistance area.
The fundamentals showed a mixed position of the Eurozone economy where the manufacturing sector of Italy and Spain expanded, while the factory orders in the German economy contracted, and the interest rate was kept the same at 0.5% by the ECB.
The pair is still under control of bears where sellers would keep enjoy shorting the euro as long as it sustains below the critical resistance level of 1.3260.
Pound – Bullish Pace
The British Pound sustained itself in the bullish channel where it stayed firm against the U.S. dollar, where its construction, manufacturing, and as well as service sector grew way better than expected in the previous month.
The disappointing data of NFP let the pair to gain instantly after which it closed near 1.5629 level. The pair would remain a good opportunity to buy as long as it continues to trade above the strong support level of 1.5560.
The key economic indicators to be released this coming week include the Claimant count change and the unemployment rate of the U.K. economy, where better than expected outcomes may give a further boost to the pair where it could target 1.5650 and 1.5700. However, investors are still eying on the political factors where Syria and the U.S forces are one center of attention for them.
To contact the reporter of this story: Jonathan Millet