AUD/USD’s 2016’s reversal’s correction targeting 20 dma

By FXStreet The previous couple of weeks have been a volatile recovery of the 2016 opening’s global downtrend and sell-off in the Aussie. The greenback started to loose its edge and was unwound heavily, before a slight ‘nonfarm payrolls recovery‘, to allow AUD/USD to regain the majority of the 474 pips between this year’s highs and low of 0.6827.

The greenback finished higher after the US jobs data on constructive details within the report, rater than the headline itself though. There was a much needed rise in the participation rate and lower unemployment that encouraged US dollar demand. AUD/USD made a low of 0.7058 from 0.7217 highs, finishing at the lows.

AUD/USD in the week ahead

For this week, although China are out, there are some that will be feeding the markets insights to the Chinese economy with data releases still churning. We already had the foreign exchange reserves mom 3.23vs 3.2 expected, but below 3.3 prior. We will all get a measure of economic activity during the week in the CB Leading Economic Index for December. However, the focus has started to turn from China and attention switches to oil and whether the US is going to enter a recession.

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Source:: FX Street