Quick update on my chart setups as I confirm the U.S. Dollar strength for the current week.
AUDUSD continues to remain a short. It dropped to a low of 0.7532~ before bids started popping in. Once again, this is another good short opportunity if you failed to get in on the earlier one. Let’s take a look at the lower time frame.
Switching over the our 30-minute time frame, we begin to see bid exhaustion. There were no offers up to the point of 0.7580~ and now price is stalling at this level as we expect a round of buyers closing out and offerings entering the market. I currently executed a short position as the Australian Dollar tends to perform on par with gold and, well, gold just isn’t performing that well.
Key event is on Thursday when the Reserve Bank of Australia posts a Financial Stability Review. I currently do not expect anything major except for them to, once again, reinforce the idea that they are comfortable with further stimulus as deemed necessary. August building permits and home loan figures were not very pleasing so I expect the RBA to adopt a more dovish policy.