The Australian dollar has been fairly stable recently, and it has actually risen against weaker rivals such as the New Zealand dollar and Japanese yen. However, that could all change if investors start to dislike risk, if, for example, U.S. elections or disappointing corporate earnings cause global equities to retreat.
The New Zealand dollar’s recent advance has come to a halt recently after the Reserve Bank of New Zealand suggested that interest rates may need to be cut further from their current record low of 2.0%. The NZD’s retreat has been particularly noticeable against the Australian dollar as the AUD/NZD pair has surged back above 1.0500 after dipping to as low as 1.0240.
he Euro/Aussie currency pair is in the process of creating a bearish engulfing candle on its daily chart, which is obviously a bearish pattern as it shows a clear shift from previously buying to now selling pressure.
The retails sales figures for the British pound and Bank of England rate decision may cause some action today on the EUR/GBP currency pair. The Aussie remains bearish for now, dropping into wave five of 5 that may hit 0.7400 today.
The British pound/U.S. dollar (GBP/USD) currency pair hit our projected levels around 1.3270; the Aussie is sideways, but moves from the last few sessions suggests that we may see another leg down to a new low.
On the AUD/USD pair, price keeps trading higher within current A-B-C correction with price now in final wave C. For now our count stays the same expecting that AUD will catch up the rest of the crew on stronger USD.