AUD/USD Daily Signals – September 4, 2017

Aussie Gaining Strength

What’s in the News?

The first since Trump took office, the nuclear test is a new obstacle for markets that has proven strong in the recent period of tension on the Korean peninsula. Any nation doing business with Kim Jong Un’s government, the US President Donald Trump threatened to increase economic penalty and stop the trade. The defense chief also said that the US has many military options. Last week after North Korea’s launching missile over Japan, there was an early pay off in the US equity index futures.

In the Bloomberg survey of economists, the nonfarm payroll rose by 156000 below the median estimate of 180000 and revisions for the initial two months deducted 41000 jobs. While consumer sentiment climbed to a three month high among an improving perspective for household finances and the economy, the U S stocks rose and treasures diminished as investors chose to focus instead on separate reports. This resulted in the American factories extending in the month of August prompting the expansion in six years.

Treasury Secretary Mnuchin called Congress to discuss about the combination of $7.9 billion disaster relief package for Harvey. This also includes an increase in the nation’s borrowing limit.

President Trump visited storm affected areas in Texas and hoped for a speedy congressional action on relief aid. Some house conservatives feel that directly involving this with an increase in the debt limit will be a terrible idea.

What do the Charts Say?

Intraday bias in AUD/USD is trading above the 0.7946 level.  The pair gets a good support base that reinforces the expectations of continuing the bullish bias in the upcoming period. The way is open to head towards the recently recorded top at 0.8001 on the near term basis. The pair remains bullish for the moment while trading on rebound after testing barriers. This makes the trading settle now at the support area that appears in the chart. Some consolidations would be seen with bullish momentum. A further rise is expected from current levels with the pair trading on rebound found at latest trend line support and above the oscillator at 50.0 levels. We can see the pair showing sign of medium term bullish movement to an upward bias. An upside breakout through the 50EMA suggests that the pair is still looking good. The pair is expected to target projection of 0.8001 levels and a break here later might lead to the pair testing the levels of 0.8005. Hence, we’d be expecting resumption of larger up trend from current resistance-turned- support levels.

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