Today's night was extremely interesting for people following the situation in the Pacific and Asian countries. The main topic is the situation in Australia where plenty of things happened.
On Thursday, the 23rd of August, the event calendar is quite busy with important data releases. during the European session, investors' eyes will be directed to the publication of PMI data from the Eurozone countries and the minutes from the last meeting of the ECB. During the US session, the USA will publish Unemployment Claims, ISM Manufacturing, Composite PMI and New Home Sales data.
AUD/USD analysis for 23/08/2018:
Australia and New Zealand Banking Group (ANZ) has started a series of important events in Australia. The bank has published the latest ANZ Stateometer. It shows that in the second quarter of the year, in four states accounting for nearly 90% of the country's GDP, there was a slowdown. In addition, all fell below the economic growth trend line.
Australian dollar reacted to this fact by a sudden weakening, and then another negative information appeared for the country. Australian Finance Minister Mathias Cormann resigned. What's more, he said that Prime Minister Malcolm Turnbull has no party support and should also resign.
During a press conference called by the Australian Prime Minister, he said he was not going to give up his position. He added that if he receives a letter in which the majority of party members will be in favor of his dismissal, then he will give up and resign from returning to being a senator. In addition, the forthcoming deliberations of the Australian Parliament were postponed until September 10.
As if that was not enough, Australia decided to prohibit the Huawei phone manufacturer from participating in the construction of mobile infrastructure in the country. For now, China's answer is unknown, but the markets expect some retaliation.
Let's now take a look at the AUD/USD technical picture at the H4 time frame. The Australian dollar, as a result of all reports, became the weakest currency overnight. The scale of falls was not very big, AUDUSD dived about 50 pips, but when Europe joins the trade, traders may see further declines. The nearest technical support is seen at the level of 0.7278, just below the 50% Fibo retracements of the last swing up. The other important level is 61% Fibo at 0.7271, so if this one is violated, then the market might try to test the support at the level of 0.7246. On the other hand, the nearest resistance is seen at the level of 0.7342.
