An uptrend formed on January 21 and today we can definitely talk about a long-term flat trend in the range of 0.7552-0.8000 USD. The stable demand for risky assets and the rising cost of raw materials should have further stimulated the AUD to grow. However, the US dollar also became stronger due to positive macroeconomic statistics and progress in the fight against the pandemic in the US.
This week, the USD was under pressure after the Fed representatives confirmed their commitment to a soft monetary policy. The central bank considers the increase in inflation a short-term phenomenon. However, the RBA is also not going to change anything in its monetary policy. Perhaps that is why we can see that both currencies have become equally strong. The Australian dollar is periodically supported by the growth of the Chinese economy, but due to the deterioration of trade relations, this impact has become less pronounced. However, the decline in unemployment in Australia for the third month in a row, as well as the growth in retail sales, allow us to be optimistic about the AUD. Therefore, the rates are increasing for the third day in a row.
It's not worth expecting any breakthrough in the AUD/USD rates. However, next week the most important reports on business activity in China, the trade balance and quarterly GDP report in Australia, as well as data on unemployment in the United States are expected to be published. Thus, volatility will increase sharply, and everything will depend on whether the statistics meet the expectations of investors. At the moment, most technical analysis tools indicate the efficiency of the deals to BUY, and we also consider such deals to be more profitable today. The entry points to the market can also be at the levels of 0.7552 and 0.8000, the achievement of which can mean a reversal or a resumption of the uptrend.
