AUD/USD - We had a decent drop time to recoverHi guys, we are looking next into the AUD/USD -
Fundamentals :
1. Strong Australian Economic Outlook
The Australian economy benefits from its abundant natural resources, including iron ore and coal, which are critical exports to key trading partners like China. With China's economic recovery gaining momentum, increased demand for Australian commodities is expected to support the AUD.
2. Rising Commodity Prices
Australia’s economy is closely tied to commodity markets. Recent rallies in commodity prices, particularly in metals and energy, provide a supportive backdrop for the AUD. Higher export revenues strengthen the currency by improving the country’s terms of trade and boosting investor confidence.
3. Divergence in Central Bank Policies
The Reserve Bank of Australia (RBA) has taken a data-driven approach to monetary policy, potentially adopting a more hawkish stance if inflation persists. Meanwhile, expectations of a pause or slowdown in the Federal Reserve's rate hikes could reduce support for the USD, narrowing the interest rate differential and favoring the AUD.
Technicals : Simply pair has been low for quite a long time over bigger time frames such as 4H,1D,1W
Entry: 0.62500
Target: 0.63500
As always my friends happy trading!
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