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Audusdsetup

AUD/USD Forex Signal: Sell-Off to Accelerate Ahead of RBABearish View Sell the AUD/USD ahead of the RBA decision. Add a take-profit at 0.6950 and a stop-loss at 0.7050. Timeline: 1-2 days. Bullish View Set a buy-stop at 0.7030 and a take-profit at 0.7100. Add a stop-loss at 0.6050. The AUD/USD pair crashed to the lowest level since July 2020 as investors wait for the upcoming interest rate decision by the Reserve Bank of Australia (RBA). The pair also dropped sharply after the latest US jobs data. AUD/USD Forecast The four-hour chart shows that the AUD/USD pair has been in a sharp bearish trend in the past few weeks. The sell-off accelerated when the pair dropped below the key support at 0.7170, which was the lowest level in September. The pair has also moved below the 25-day and 50-day moving averages. Therefore, there is a possibility that the bearish trend will continue ahead of the RBA decision. The drop will likely be saved by a relatively hawkish RBA statement. RBA Decision The AUD/USD declined after Australia confirmed the community spread of Omicron, the latest variant of COVID-19. In a statement during the weekend, the country’s health ministry confirmed that 5 people had contracted the new variant in Sydney. There are worries that more people will continue to contract the illness. Therefore, there is a likelihood that this variant will have an impact on the RBA, which started its meeting today. Before the Omicron variant, most analysts were expecting that the RBA will tweak its statement about when it will start hiking interest rates. In the previous meetings, the bank insisted that it will hike interest rates in 2024. Therefore, the next key catalyst for the AUD/USD will be the RBA statement on interest rates even as the government comes up with solutions on the virus. It is unclear whether the Australian government will impose new lockdowns to curb the new spread. The uncertainty of the RBA comes at a time when the Federal Reserve has hinted that it will start embracing a more hawkish policy. In a statement last week, the Fed Chair confirmed that the bank will unwind its $100+ billion quantitative easing policy earlier than expected. Powell also noted that the current variant will likely lead to higher inflation in the country. He also warned that the variant will affect job creation. Data published on Friday showed that the US economy is seeing slow job growth. The economy added more than 240k jobs in November, lower than the expected 500k+.
Short
by SmoothJB
AUD/USDThe Australian dolar has been falling sharply, due to risk-off sentiment hitting hard as concerns rise about the economic impact of the new omicron coronavirus variant. The Australian economy is already contracting sharply, as was revealed by last week’s GDP data which showed a quarterly contraction of 1.9%. The USD is relatively strong, so this pair is a major focus of the Forex market and has seen lots of action. The price of this currency pair ended last week right near its low after falling by more than 1.66%, closing at an 18-month low price with strong bearish momentum. These are all bearish signs and there is a good chance that the price will see another strong fall like last week, so there will probably be an opportunity for a short trade here.
Short
by SmoothJB