Forex Signals

AUD/USD Set to Complete 61.8% Fibonacci Retracement – Signal Update! 

Today in the early European trading session, the AUD/USD currency pair Managed To stop Its Previous Session losing streak and drew some modest bids on the back of the upbeat China trade numbers, which came out better than forecast. Also, capping the losses could be the light calendar in Asia amid the U.S. holiday. On the contrary, the fresh risk aversion wave, triggered by the US-China renewed tussle and Brexit issue, turned out to be a major factor that kept the lid on any further gains in the currency pair. 

In the meantime, the broad-based U.S. dollar strength backed by Friday’s released upbeat U.S. jobless rate and wage growth data also kept the currency pair under pressure. The AUD/USD currency pair is currently trading at 0.7285 and consolidating in the range between 0.7270 – 0.7298.


At the data front, China’s Trade Balance for August, in Yuan terms, arrived in at CNY416.59 billion against CNY196.21 billion expected and CNY442.23 billion last. Meanwhile, August exports arrived in at +11.6% vs.+2.1% expected and +10.4% last while imports arrived at -0.5% vs. -0.7% expected and +1.6% prior. 

As far as the USD terms’ data is concerned, the headline Trade Balance improved past-$50.5B forecast to $58.9B. The Exports increased by 9.5% versus 7.1% prior, whereas Imports eased to -2.1% against +0.1% expected and -1.4% prior. However, the Chinese exports and big surplus beat initially impressed the AUD bulls and became the key factor that kept the currency pair from losses.

Elsewhere, the market risk tone has been sluggish since the day started, possibly due to the renewed conflict between the U.S. and China. The war between both parties fueled after the U.S. punished Chinese technologies and diplomats by imposing several sanctions that have repeatedly irritated the Dragon Nation. In turn, China’s Foreign Ministry advised the U.S. to stop abusing the domestic companies on the day. 

As per the keywords, “Without evidence, the U.S. has abused national power to take measures on Chinese companies.” Apart from this, previous Chinese warnings to cut the U.S. debt buying also heated up an already intensified tussle. 

Also weighed on the risk sentiment is the rising coronavirus cases in Asian and Europe, fueling worries about the global economic recovery. As per the report, the coronavirus cases crossed 27 million cases as of September 7, as per the Johns Hopkins University data. However, these fears also kept the traders cautious.

At the USD front, the broad-based U.S. dollar managed to maintain its bullish trend and remain on the day’s bullish track. However, the U.S. dollar gains were supported by the upbeat U.S. labor market report, which revealed a slipped in the unemployment rate and a rise in U.S. Treasury yields. Thus, the gains in the U.S. dollar kept the currency pair under pressure. Whereas, the U.S. Dollar Index that tracks the greenback against a basket of other currencies rose by 0.18% to 92.882 by 12:05 AM ET (5:05 AM GMT).

Looking forward, the Labor Day Holiday in the U.S. will likely restrict the market moves. Whereas, the updates on the virus and Sino-American tension could not lose its importance. In the meantime, the market players will be interested in the headlines concerning the Brexit.

The AUD/USD pair is trading sideways over an immediate support level of 0.7277 level. Closing of candles above this level may drive upward movement in the market until the 0.7325 level. A bearish breakout of 0.7276 level may drive selling until the 0.7249 level today.

Entry Price – Buy Limit 0.72463

Stop Loss – 0.72063

Take Profit – 0.72863

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

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