AUDUSD BEARISH RETRACEMENT FOLLOWS WITH A BULLISH WAVE C LEG COMPLETION WITH TARGET

FUNDAMENTAL BEAM

AUD/USD had a solid week, gaining over one cent. The pair closed the week at 0.9435. This week’s highlight is Employment Change. Here is an outlook of the events and an updated technical analysis for AUD/USD.
The Australian dollar has benefited from the US shutdown, which has hurt the US dollar. As well, the Aussie got a boost from the RBA, which maintained its benchmark interest rate and hinted that it will not be reducing rates in the near future.
AUD/USD graph with support and resistance lines on it.

1. AIG Construction Index: Sunday, 22:30. The Construction Index continues to post readings well below the 50-level, indicating ongoing contraction in the construction industry. The August release came in at 43.7 points and no significant change is expected in the upcoming release.
2. ANZ Job Advertisements: Tuesday, 00:30. This indicator is an important gauge of activity in the employment sector. The indicator continues to post declines, with the August release coming in at -2.0%. Another decline is expected in the September release.
3. NAB Business Confidence: Tuesday, 00:30. Business Confidence jumped to 6 points in the previous release, its best showing in over two years. Will the indicator follow suit with another sharp release for September?
4. Westpac Consumer Sentiment: Tuesday, 23:30. Consumer Sentiment has posted solid in the post two releases. Strong consumer confidence usually translates into consumer spending, which is a key engine of economic growth. The markets are hoping for another positive reading in the September release.
5. MI Inflation Expectations: Tuesday, 00:30. This indicator helps analysts keep track of actual inflation. The indicator weakened last month, with a gain of 1.5%. This was the lowest gain in over six years, and the markets will be looking for stronger numbers in the September release.
6. Employment Change: Thursday, 00:30. This market-mover is one of the most important economic indicators and is eagerly waited by the markets. The indicator has run into some trouble, with sharp declines in the past two releases. The markets are expecting a strong turnaround in the upcoming release, with an estimate of a gain of 15.2 thousand. Will the indicator meet or beat this prediction? The Unemployment Rate has been steady, and is not expected to change from its present level of 5.8%.
7. Chinese Trade Balance: Saturday, Tentative. Chinese Trade Balance shot up to $28.5 billion in August, up from $17.8 billion the previous month. The markets are expecting another strong release in September, with an estimate of $25.2 billion. The Australian dollar is sensitive to key Chinese data, so this indicator could have a major impact on the direction of AUD/USD.

TECHNICAL BEAM

 A wave B completion target now in sight after which a bullish wave C leg follows with a price target as seen above.

NOTE: Price predictions produced by FibonacciPrice&PatternTrader may be affected by unforseen events like hurricane, earth quake, flood and other natural disasters consequently changing price patterns already predicted. Hence we advice strict adherence to money management techniques.

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