AUD/USD Forecast December 17-21 – Will Aussie’s December Slide Continue?

The Australian dollar sagged late in the week, as it fell to an 8-week low on Friday. Australia releases key employment indicators. In the U.S, the Fed is expected to raise rates, and we’ll get a look at U.S Final GDP for the third quarter. Here are the highlights of the week and an updated technical analysis for AUD/USD.

In the U.S., consumer spending and inflation dropped in November, but still was within expectations. This helped boost the U.S. dollar last week. The global trade war continues to weigh on risk appetite, and the arrest of Huawei’s CFO Meng could complicate U.S-China trade talks.

AUD/USD daily graph with support and resistance lines on it. Click to enlarge:

  1. Monetary Policy Meeting Minutes: Tuesday, 00:30. The minutes will provide details of the RBA meeting earlier in December. At the meeting, the RBA said that low-interest rates continue to support the Australian economy, and the minutes will likely reiterate that the bank will continue current monetary policy.
  2. MI Leading Index: Tuesday, 23:30. The index continues to show little movement and the November release posted a weak gain of 0.1%.
  3. Employment Change: Thursday, 00:30. This indicator is the highlight of the week. The economy added 32.8 thousand in October, crushing the estimate of 19.9 thousand. The November forecast stands at 20.0 thousand.
  4. Unemployment Rate: Thursday, 00:30. Unemployment has remained pegged at 5.0% for two straight months. No change is expected in the November reading.

*All times are GMT

AUD/USD Technical Analysis

AUD/USD posted gains for most of the week but reversed directions on Friday and dropped sharply, as the pair ended the week with small losses.

Technical lines from top to bottom:

We start with resistance at 0.7480, which capped the pair in mid-July and defends the symbolic 0.75 level. 0.74 was the high point reached the pair reached at the wake of December. Next is 0.7340, which the pair breached in late November.

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