Alex von Stachelkopf
The Australian Dollar stays under pressure. The major drivers of the downswing are China’s economic slowdown and the concerns over the RBA’s possible quantitative easing steps.
This week the Australian Bureau of Statistics is to publish its unemployment report. Investors are afraid of a possible increase. If this is the case, the probability of the RBA lowering the interest rates will only increase.
According to experts, the Australian Dollar is still showing weakness against its US counterpart. AUDUSD has completed sub-wave А(С)/С inside a major downswing - wave С(С). A break below 1.0225 will elongate the downswing. In this case, 1.0156/48 will turn into the closest major level of support. The downtrend will be over once the price breaks above the MF sloping channel and pivot 1.0355.
Alex von Stachelkopf
