Foreword: The US dollar was weakened by the US mid-term election on Wednesday. The Australian dollar/US dollar climbed up to a high of 0.7299, and then moderately retraced from a high level. The quarterly report of the Politburo of China was believed to provide support for the economy, which is conducive to the continued rebound of the Australian dollar and the New Zealand dollar. At present, the Australian dollar short position is at an extreme level, but once there is a position adjustment, the AUD/USD may have a strong rebound, and it is still expected to touch 0.74.

On the technical side, the AUD/USD is above the 61.8% Fibonacci retracement of the September-October decline of 0.7200, followed by strong support at 0.7250. At the same time, technical indicators have been modestly lower, staying near the overbought level, and then the AUD/USD continues to retrace more likely. Summary: The Australian dollar is still in a downward trend. The Australian dollar is expected to maintain its downtrend as the lows are constantly being refreshed and the Reserve Bank of Australia has no intention to raise interest rates for a short period of time.

In addition, the recent Australian property market began to cool down and consumer demand began to fall, economic growth began to slow down, and low interest rates began to weaken the economic pull. In this case, the Reserve Bank of Australia may have to choose to cut interest rates, which may cause the Australian dollar economy. Negative effects, and then pressure the Australian dollar. The upper resistance is 0.7315 and the lower support is 0.7250.

Article from AETOS