Investors go pessimistic over the forthcoming US budget talks. If the Republicans and the Democrats fail to compromise on the issue, the US economy may fall off a “fiscal cliff” into a major recession (or even depression).
According to Tim Waters from CMC Markets, the politicians are unlikely to find a solution to the fiscal problem, which will create extra tension in financial markets.
Therefore, it looks like AUDUSD is likely to see another downswing. Mr. Waters says that the risks of a major decline will only escalate if the price breaks below 1.0440.
Forex.
According to , the Australian Dollar has suspended its weakening against the US Dollar. The experts report that AUDUSD has finished forming wave 4 or b(С) and is heading towards the 1.0489 high.
A further rally will probably encounter resistance around 1.0511, 1.0535. The current bullish move will be completed as soon as the price overcomes the bottom of the MF sloping channel and consolidates below 1.0426 (as shown below).
