A Review 12-16 December 2016.
AS I mentioned in my weekly forecast Aussie was week against most major counterparts , especially against USD as the interest rate decision by the Fed so the currency gain considerable strength.
the most economic news released last week that would have affected AUD was employment change( remember I highlighted the fact that labor market was one of the 3 factors that RBA looks at for its monetary policy).And china Industrial Production both data were positive and should have strengthen AUd but didn’t because of the relative strength of the counterparts except for JPY.
As predicted AUD was weak against the USD which benefit from the hugely expected interest rate hike.
The pair has been ranging for two month now , its started the week at support, and bought for the whole week.
Here also AUD was weak against the pound, due to a gain in pound strength(positive CPI and BOE decided to keep interest rate at current level.)
B.Weekly Forecast 19-23 December 2016.
looking forward on Tuesday 20 December, RBA will have its last monetary policy meeting for the year.
I will keep my Bearish bias on AUD, as i stated before, i sell the currency not because of its Economy is weak but because in my opinion ,as an opened economy heavily dependent on Exports Australia will benefit from a weak exchange rate, in other words a weak currency.
Please refer to below chart to see examples for how I intend to sell AUD.