AUD PRICE OUTLOOK: AUSTRALIAN DOLLAR BULLISH TREND PUSHES ONWARD VS USD, NZD, JPYAUD value motion maintains its bullish pattern a
AUD PRICE OUTLOOK: AUSTRALIAN DOLLAR BULLISH TREND PUSHES ONWARD VS USD, NZD, JPY
- AUD value motion maintains its bullish pattern as indicated by key shifting averages
- Australian Greenback energy could persist contingent on sustained volatility suppression
- AUD/USD, AUD/NZD and AUD/JPY may press for contemporary year-to-date highs
The Australian Greenback is advancing to begin the week. AUD value motion is exhibiting energy in opposition to its US Greenback and New Zealand Greenback friends specifically, however the Aussie is buying and selling roughly flat in opposition to the Yen. Australian Greenback bulls are doubtless steering the sentiment-linked AUD higher as threat urge for food prospers amid sustained volatility suppression.
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That is illustrated by the inverse relationship typically held between the S&P 500 VIX Index fear-gauge and the Australian Greenback, which is proven beneath utilizing an equally-weighted benchmark of AUD/USD, AUD/NZD and AUD/JPY.
AUSTRALIAN DOLLAR PRICE CHART & VIX INDEX OVERLAID: DAILY TIME FRAME (2020 YEAR-TO-DATE)
Chart created by @RichDvorakFX with TradingView
Additional declines in readings of anticipated market volatility may facilitate the Aussie’s subsequent bullish leg. Additionally, seeing that it’s usually the case that the pattern is your good friend, there might be potential for the Australian Greenback to increase its climb in opposition to its USD, NZD and JPY friends. The extended absence of volatility could however go away the Australian Greenback weak as complacency builds.
AUD/USD PRICE CHART: DAILY TIME FRAME (15 FEB TO 17 AUG 2020)
That mentioned, with spot AUD/USD value motion reclaiming its short-term 8-day shifting common, it seems to be like Australian Greenback bulls have gained management once more over the Buck. AUD/USD may quickly edge towards 2019 highs across the 0.7265-price stage with the US Greenback on protection as soon as once more.
| Change in | Longs | Shorts | OI |
| Each day | 2% | 8% | 6% |
| Weekly | -14% | 5% | -3% |
AUD/NZD PRICE CHART: WEEKLY TIME FRAME (APR 2017 TO AUG 2020)
AUD/NZD value motion is rocketing larger after what seems to be a topside breakout from an inverse head-and-shoulders sample. This follows 5 consecutive weeks of beneficial properties notched by the Australian Greenback in opposition to its Kiwi cousin. From a elementary perspective, diverging financial coverage steering just lately offered the RBA and RBNZ stands out as one potential catalyst serving to propel the continued rally set forth by AUD/NZD.
AUD/JPY PRICE CHART: DAILY TIME FRAME (09 DEC 2019 TO 17 AUG 2020)
Evaluating AUD/USD and AUD/NZD to AUD/JPY, nonetheless, reveals that Australian Greenback energy in opposition to the Japanese Yen has been comparatively missing. That mentioned, AUD/JPY value motion maintained its 8-day shifting common regardless of Monday’s broad-based bounce recorded the JPY.
| Change in | Longs | Shorts | OI |
| Each day | 10% | 7% | 8% |
| Weekly | 9% | 8% | 8% |
This might point out that the Australian Greenback has potential to extend its bigger bullish pattern. Correspondingly, it now seems to be like AUD/JPY could also be gearing up for one more try on the 77.00-handle since forming a double-top sample on June 5 and July 21.
— Written by Wealthy Dvorak, Analyst for DailyFX.com
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