AUD / USD Forecast December 26 – 30

FX Crunch :
The Aussie showed remarkable strength against Greenback, breaking parity and breaking the 1.0200 stage, before settling down to close the week at the 1.0140 level. The upcoming holiday week is very calm, with only one indicator release. Here is an outlook for the Australian events, and an reorganized technical analysis for AUD / USD.

AUD/USD has been marked by enormous volatility throughout 2011, but traders would be clever to remember that at the end of the day. The pair has recorded a 1% loss for the year. Thus the wild fluctuations of the pair are clearly somewhat misleading, when the movement of the pair is looked at with some perspective.

Private Sector Credit: Friday, 00:30.  This indicator fallen to 0.2% in November, after climbing 0.5% in October, the highest figure recorded since April, 2011. The estimate for December calls for a drop to 0.3%. If the indicator can break the forecast, this would be upbeat for the AUD.

AUD / USD Technical Analysis

 The pair opened the week at 0.9961, and quickly climbed all the way to 1.0219. The pair gave back most of these gains, closing at 1.0139.

Technical levels from top to bottom:
We start with 1.0733, which is strong resistance. Next is the round number of 1.0500, which was the support in May and June, and has now become a resistance. Below is 1.0446, after that the round number of 1.0400, which is also a strong stage of resistance. The next major resistance is 1.0336. Next, the level of 1.0260 is a weedy line of resistance, which looks to be violated if the pair continues its rising. Equality may be a vital psychological barrier, but has not played a role of support or resistance to the movement of the pair. Next is 0.9890, a weak support line. 0.9810 is now being a strong support to the pair. Another strong support for the AUD can be seen at 0.9660, as well as the round number of 0.9500, which was braked only one time in 2011. The last support level for now is at 0.9376.

Neutral on AUD / USD
The USA’s economic indicators are undoubtedly stronger than in Australia, which would support the USD against the AUD. However, the Aussie rose above equivalence this week, showing renewed strength and climbing all the way past the 1.02 level.

Trading AUD/USD currency pair.

Rate of the AUD/USD is comprised of the AUD (Australian Dollar) as the 'base' currency, while the USD (US Dollar) as the 'counter' or 'quote' currency. Trading this currency pair is also known as trading the 'Aussie'. The AUD/USD exchange rate is in fact a comparison of the value of one currency in relation to the other. For exemplar, the quotation AUD/USD 0.95 means that one Australian dollar is exchanged for 0.95 US dollar (95 cents). If the forex rate increased to 0.98, this would reveal a strengthening Australian dollar as compared with the US dollar. You would buy, if you estimated that the Australian dollar would carry on to strengthening against the US dollar.

As trading occurs on currency comparison, it is easy to trade AUD/USD in any economic situation. AUD/USD forex trading is preferential as a way to reduce portfolio risk as it provides the facility to profit in increasing and declining markets. In recent times, the AUD/USD exchange rate has been affected by interest rates and commodity prices. On this page you will find information about factors which influence the price of AUD/USD including real-time quotes.