Forex Daily Analysis : 19 May 2021 - Consumer Sentiment Data Weakens Aussie

The forex daily analysis on May 19, 2021 will discuss the strengthening of the Australian Dollar against the US Dollar held back in market trading today, Wednesday May 19, 2021. The cause of the Aussie's weakness was the impact of the weak release of Australian economic data, the data was the Westpac Consumer Sentiment which was released -4.8% far below the previous period of 6.2%. As we know, the movement of the AUDUSD in the last few days is very proud of the Australian Dollar compared to the US Dollar. The Aussie strength was mainly driven by rising market demand for key Australian commodity yields. As we know, iron ore and copper are the products of Australia's mainstay commodities that boost the strengthening of the country's currency. The disappointment on the part of Australian consumers is more focused on the oversized expectations for the recovery of the Australian economy due to the Covid-19 pandemic. They assess that the Australian economy is still far below the normal limit, even though the Reserve Bank of Australia RBA (Reserve Bank of Australia) has disbursed stimulus in a large amount. The US dollar is trying to bounce back from weakness especially against the Aussie currency, but it is still weak against several other major currencies. It is estimated that the weakening of the US Dollar will still occur if the physical sell-off of the Greenback continues. The physical selling of the US dollar was influenced by concerns about the high US inflation rate. On the other hand, economists argue that the US Dollar sell-off is starting to subside, this is because the focus of market participants is currently on the release of economic data from the UK and the European region, which is inflation data. In addition to the inflation data, market participants are still waiting for the Fed minutes which will be delivered on Thursday morning. Although the current growing predictions are still the same as before, that the US Central Bank will still maintain its low interest rates. Regarding the release of UK and EU inflation data this afternoon, if it is released that is still below the US inflation level, then it is certain that the physical sell-off of the US dollar will stop.

Forex Daily Analysis Predictions 

Today's FOREX prediction on the AUDUSD pair is expected to weaken/fall and the recommended OP (Open Position) is SELL at the level of 0.77700. With a Target Profit (TP) of 10 - 20 points and a Stop loss (SL) of 5 - 10 points.
This the daily analysis of forex on May 19, 2021 which discusses the strengthening of the Australian Dollar. Keep Money Management and Risk Management first in your trading. Visit GIC Indonesia to get information about the world of trading. You can also join us in the GIC Trade Telegram Community and GIC Trade Telegram Channel. Don't forget to check out the GIC Indonesia Youtube account which is full of a lot of information, and follow our Instagram account to get information about various interesting webinars that you can participate in.