Today, on August 14th, the Australian Dollar is trying to recover against its American counterpart. Yesterday, it gained more than 0,3%. Still today, the price has already retraced by 0,1%. Yesterday's strength of the Aussie was backed by poor US economic data coupled with reassuring local figures.
The Aussie’s ability to recover after dropping down to 2-momth lows around 0,9240 may testify to the fact that the Australian currency has a lot of upward potential against the US Dollar.
Yesterday's rally was backed by higher consumer confidence in Australia. According to Westpac's index increased by 3,8% in July. At this point, the figures are just 1,2% away from the level that was seen before the adoption of the Australian Federal budget.
It is interesting to note that the Aussie kept on showing strength even despite the current economic slowdown in China, Australia's major trade partner. Still, such a steady really in the AUDUSD market amid China's temporary economic weakness may take place only if there is no escalation of geopolitical risk around he globe.
The US Dollar decline against the Aussie after the US retail sales report came out pore than expected. In particular, the retail sales volume remained unchanged in July as compared to the previous reporting period.
AUDUSD: Mid-Term Prospects As Seen By Masterforex-V Academy
According to the comprehensive analysis of the H1 AUDUSD chart conducted by the trading experts of Masterforex-V Academy, the current mid-term bias is bullish. Still, this is still considered a bullish reaction to the long-term downtrend.
the price is currently nearing the MF sloping channel . The sloping channel indicates the demand range defended by the bulls. IF the price manages to break and consolidated below the MF sloping channel, we are likely to see the end of the mid-term rally as the bears resume the long-term downtrend, Masterforex-V Academy experts assume.
If the price goes down, a break below 0,9275 will give way to 0,9258 and 0,9243.
Alternatively, a rally above 0,9309 will give way to 0,9319 and 0,9357.
The Binary Options Department of Masterforex-V Academy recommends going short and purchasing put options on AUDUSD on bullish reactions. The lifetime of the option is 1 hour.
