• The US economic recovery made the AUDUSD pair weaken.
  • The price increase on this pair is only a correction, before dropping to a lower level.
AUDUSD daily analysis for August 20, 2021 this time discusses the improvement of the US labor sector, which is marked by a decline in Jobless Claims data from 377K to 348K, the lowest number during the pandemic, successfully affecting the AUDUSD pair. At the time of the AUDUSD daily analysis for August 20, 2021 written by the GIC team, the pair was at the level of 0.7145. This improvement in labor sector data is certainly very important because it is one of the "tools" of the Fed to take monetary policy in September. In addition, there was a decline in housing bad loans from 6.38% to 5.47% as demand for permits for housing development in the US rose from 1594 to 1635. This phenomenon will certainly make the meeting at Jackson Hole, August 26, 2021 very important because the market hopes that Fed Chairman Jerome Powell will provide clues on liquidity withdrawals in the future. Meanwhile, in Australia itself, there is a decline in housing sector data where this sector is the mainstay for the country in the country's economic recovery. Housing sales data fell 20.5% compared to last month with a decline in building permits over the past 3 months, so that business sentiment reached its lowest point in the past year. This situation has made the Australian dollar currency fall in the last eight months.

What is the effect on the market?

AUDUSD daily analysis discusses the improvement in US economic data as well as the weakening of Australian economic data, making the AUDUSD pair bearish in the future. It is predicted that the AUDUSD pair will move in the range of 0.7037-0.7180.

Trading plan

  • Sell limit 0.7180-0.7237 with a target 0.7101-0.7037
  • Stop loss 0.7392
This the daily analysis of AUDUSD 20 August 2021. Enjoy other analytical articles only in the GIC Journal such as the explanation of capital expenditure. Also take classes from GIC that can help you learn forex trading at Forex Academy. And also check out the video explaining forex at Trading for Freedom.