As the RBA warned the available Q2 data are pointing to a likely moderation in Q2 GDP growth in Australia, Aussie dollar lost his up-move momentum and “AUDUSD forming Double Top” could be a reality. Here is today’s economic calendar and AUD/USD forecast.
First off today was National Australia Bank’s Business Confidence which is a survey of the current business condition in Australia, at 1:30 AM GMT. Next Japan’s All Industry Activity Index is released at 4:30 AM GMT followed by Switzerland’s Trade Balance at 6 AM.
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UK’s retail Sales is scheduled for 8:30 AM which could create volatility in the GBP crosses.
The most important event of today is ECB Interest Rate Decision announced by the European Central Bank at 11:45 AM GMT Followed by their press conference at 12:30 PM. Traders will be all ears to see what the ECB will signal for their monetary policy after Brexit.
Later the US Leading Indicators is released by the Conference Board at 2 PM GMT and Japan will end the trading day by releasing their Foreign bond investment for July at 11:50 PM GMT.
We have a ton of Purchasing Managers Index (PMI) releases today from around the world including that of Germany’s Markit PMI Composite at 7:30 AM GMT Euro zone’s Markit PMI Composite at 8 AM, UK’ Markit Manufacturing PMI at 8:30 AM and the US Markit Manufacturing PMI at 1:45 PM.
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Other than this Canada’s Consumer Price Index (CPI) is to be out at 12:30 PM, the same time their monthly Retail Sales is released. Baker Hughes US Oil Rig Count is scheduled for 5 PM to end a volatile trading week.
AUDUSD Forming Double Top – Technical Analysis
As the AUD/USD pair enter the Ichimoku cloud, it could be forming a Double Top Chart pattern Which could be confirmed at 50% Fibonacci level at 0.7330. Resistance remains at 0.76 and 0.78 in extension.
Long term trading strategy
One bearish strategy could be aiming 0.72 after confirmation of a break below 0.7330