The Australian dollar softened against the USD as risk appetite backs to market where as Oil fell 5% at Monday’s session. The risk appetite factor has been supporting the precious metal pressures the commodity currency Aussie dollar and Kiwi dollar.

Australian NAB business confidence index in December 7, before the value 10.

Australian NAB business confidence index in December 3, before the value 5.

“Recent financial market turmoil highlights the risks to the outlook, but has not fundamentally changed our view of the Australian economy,” said NAB Group chief economist Alan Oster.

ANZ senior FX manager Sam Tuck said the greenback benefited from a positive risk environment on Friday night with equities, yields and commodities higher.

“(But) the Aussie was relatively immune to that trend,” he said. Mr Tuck said that suggests there’s still a bit of investor fear towards commodity currencies despite easing worries about a Chinese hard landing.

“Markets are still concerned with economies that have exposure to China,” he said reported by theaustralian.

Probably the cross made a double top seems at 0.7048 rejected at 20dsma and facing strong resistance at 20wsma for two consecutive weeks.

Trading support finds at 0.6925, 0.6875 and 0.6820

Resistance seems at 0.6980, 0.7010 and 0.7050

The cross truncated the recent uptrend falling backs to last support one finds between 0.6935 and 0.6925 levels.

The current bounce remains valid until the price holds 0.6925 real selling pressure looms below 0.6870 levels.

For a trading purpose, weakness remains below 0.6920 targets at 0.6900 and 0.6980 levels.

What’s on today?

All Australian Banks are closed due to the celebration of Australia Day.

USD- Consumer confidence- Barclays: “Despite the sharp declines in retail gas prices, jobless claims have moved higher and stock prices have fallen more than 5 percent year-to-date.”

Also read: Weekly events: Jan 24th-Jan 30th

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