Chinese government has recently announced the latest economic data. This Chinese economic data reveals slower than expectations growth and economic recovery of China. Such lower than expectations figures have dragged the value of AUD on Friday.
Fall of the value of AUD:
After a stable journey now AUD seems to be struggling against USD. On Friday, AUD faced a fall of 2% as compared to USD. This was a drastic move and a climb for USD. The value of AUD dropped and it broke below the average of 50 days in the Simple Moving Average. This fall shocked the traders to such an extent that within a short tenure of just 2 days, its price has fallen about 4%. Undoubtedly it played havoc with the expectations of the novice traders of AUD.
The Focus on RBA:
After the decrease in the value of AUD in the last trading day, now AUD does not seem to be fazed by these disappointing figures of both manufacturing and non- manufacturing figures of PMI. Currently the traders of AUD are focused on the upcoming meeting of Reserve bank of Australia. They are anxiously waiting for the decisions regarding the monetary policy of RBA. The spotlight is now on the upcoming decision of interest rate. RBA bought bonds worth of $7 billion which was a severe move to cap the increase in the yield of bonds of duration of 3-years.
Levels of AUD/USD:
Currently RSI is moving along an upward trend so you can expect a gain in the near term. If the price moves upward then it might retest the highest value(0.8007) of this year. If it happens then the price might eye 0.8136. while on the other hand, a set back may lead the value towards 0.7564. As far as the sentiments of the traders are concerned, about 55% traders are net-long in the trade. this figure is grater than the number of net-long traders of previous trading day.