Dollar bulls are thriving today after the US printed stellar sales data during the New York trading session. With that in mind, traders are looking to short AUDUSD as the price breaks its range lows.
This morning’s sales data came out at 1,8% versus a forecast of -0.1%. This is a substantial improvement from the forecast as well as the previous result of -1.0%. Price has surged above 92.850 and has closed bullish on the 4hr timeframe. The next target for Dollar bulls is the previous month’s high at 93.170.
Previously traders took shorts for AUDJPY which brought in profits of up to +110 pips. The Australian Dollar is expected to push lower as other currencies edge higher against it. As the Dollar rebounds from a fundamental standpoint, traders could see AUDUSD head lower to the previous month’s low of 0.71200.
Tomorrow we have the consumer sentiment report for the US economy. If the result is higher than the forecast of 71.9, traders could see Dollar bullishness extend into next week. This can open up the possibilities of short-side swing trades for pairs against the Dollar.
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