Trading volatility: Australian data dominates
It is a relatively quiet week ahead, starting Monday 25 March, but Australia data dominates the calendar. The recent trend has been for this to be better than economist forecasts.
IGTV’s Jeremy Naylor looks at the potential for the Australian dollar to climb against the greenback and kiwi.
(AI Video Summary)
The Australian dollar
Next week, there aren't many important events happening in the trading world. However, it's worth paying attention to the Australian data because it has been showing improvement lately. This means there might be some good trading opportunities with the AUD.
AUD/USD
One currency pair to keep an eye on is the AUD/USD. There is a line of support that's going up, which suggests that the Aussie might get stronger. But it's important to be cautious because things might not turn out as expected. To manage the potential risks, it's a good idea to set a stop loss.
Another thing to watch out for is the highs from March 8th at 66.67. If the recent trend continues, it's possible that the Aussie will go up next week. Currently, it's trading at 65.18, so a stop loss should be set below the 65 level with the expectation of an upward movement.
The Australian economy
When it comes to the Aussie against the Kiwi, it's more likely that there will be an improvement. Even though there has been a slight pullback, the overall trend suggests that it's a better option for trading. The high line of resistance at 108.32 is a good place to set a stop loss, and the target is the highs at 109.45. This prediction assumes that positive data will be released in the Australian economy next week.
So, in summary, keep an eye on the Australian data because it's been improving. The Aussie against the US dollar might get stronger, but it's important to be cautious. The Aussie against the Kiwi is a better option for trading, and a stop loss should be set to manage the risks. It's all based on the assumption that the Australian economy will release positive data next week.
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