The Aussie declined yesterday as news hit that a delegation from China may cancel its plans to continue trade talks with the United States later this week because of a recent tweet by President Trump calling for increased tariffs.
The Aussie dollar felt the pain because as China goes, so does Australia. In addition, the RBA left interest rates, unchanged at 1.5%. What they said was leaving rates on hold was based on still spare capacity in the economy and that a further improvement in the labour market was likely to be needed for inflation to be consistent with the target.
So where is Aussie headed next, lets go to the charts?
Monthly Chart (Curve Time Frame) – monthly supply is 0.8800 and monthly demand is 0.6900.
Weekly Chart (Trend Time Frame) – the trend is down.
Daily Chart (Entry Time Frame) – although price is in a monthly demand zone, based on price making lower highs and lower lows, the chart suggests there is further downside on the Aussie.
This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.