The rates continue within a downward trend. At the same time, we can see that the Australian dollar, which has been under strong pressure for a long time due to the trade conflict between the US and China, received support amid the weakening of the USD and the FED's monetary policy easing.
This week the trend to strengthen the AUD continued, taking into account the perspective of the resumption of negotiations between China and the United States to resolve their trade conflict, as well as Donald Trump's readiness to postpone the introduction of new duties on goods from China. There were no macroeconomic reports on the Australian economy, but investors expect a further easing of the monetary policy of the RBA, which also has a negative impact on the value of the AUD.
As for the economic situation in the US, it also contributes to the weakening of the USD. New home sales are down for the second month in a row, and the consumer confidence index is falling faster than investors expected. Nevertheless, the FED's rhetoric is aimed at reducing the rate, but not as much as expected.
At the moment, we can see a price correction, which was very strong, and a shifting of the resistance line up. We suppose that the price correction is close to completion. Nevertheless, the deals to BUY are still relevant in the short term. In the medium term, the deals on the trend can be considered the most optimal.
