Aussie is bullish as USD turns down; All eyes on RBA
Aug 1, 2022

DXY AUDUSD

I hope you had a nice weekend and that you are ready for more volatile markets with plenty of important data on this week’s schedule. However, August is known as one of the slowest months of the year, but this time can be different due to CBs hiking policy decisions. We have RBA and BoE decisions and then important employment from Canada and New Zealand and US on Friday. Technically speaking, we see USD in bearish mode, with room for more weakness as finally stocks recover and even finished the week at the highs. It looks like risk-on mode is back as speculators believe that FED will be less hawkish in upcoming months after the US economy officially moves in a technical recession after GDP shrank in both the first and second quarters. However, Fed does not see a recession as jobs are still strong so Friday’s data will be important.

From an Elliott wave perspective, we see DXY coming down from a consolidation, so USD can get weaker across the board. At the same time I will watch AUDUSD for more upside, possibly after a pullback as RBA may not be that hawkish since they can follow the FED last week’s decision when they didn’t go for a 1% surprise.

Technically speaking support is at 0.69, if we see a dip.

AUDUSD vs DXY elliott wave
AUDUSD vs DXY Elliott wave

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EURAUD is moving sharply, check where we think it’s headed. Check our chart HERE

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