The Australian Dollar is under pressure overnight. A new main top has been formed at 1.0200, setting up a possible retracement to 1.0033 to .9993. Yesterday’s interest rate hike by China’s central bank is expected to slow down a heated up economy. This may lead to a slowdown in demand for Australian goods and services.
The lack of confidence in Australia’s growth prospects has been helping to pressure the AUD USD. Traders started selling the Aussie after reports surfaced that some economists were cutting short-term gross domestic product forecasts for Australia following recent flooding in the state of Queensland.
E-mini S&P 500 Finishes Lower in Light Trade; Watch for Weekly Reversal Top
The U.S. Dollar Index finished the week lower after failing to confirm last week’s potentially bullish closing price reversal bottom.
Clearly, both the daily and weekly chart patterns indicate this market can accelerate to the upside if the daily swing top at 78.61 is taken out to the upside. This move is likely to trigger a short-term rally to a 50% retracement level at 79.58.
The U.S. Dollar is expected to open lower against most major currencies after failing to hold on to overnight gains from the Asian session.
Shortly before the New York opening, investors seem a little reluctant to be short the Greenback as finance ministers from the Group of 20 nations meet in South Korea.
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U.S. Dollar Weakens after Lower than Expected ADP Report
The U.S. Dollar added to its already weak condition with another break to the downside versus most major currencies after ADP reported lower-than-expected jobs data.
Traders are reacting negatively toward the Dollar because the report came out on the wrong side of zero. Economists had forecast an increase of 20,000, the actual number was reported at -39,000.