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.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Start trading forex today
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.6 points on EUR/USD
- Analyse market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile
Live prices on most popular markets
- Forex
- Shares
- Indices