By FX Empire.com
The AUD/USD pair advanced slightly early Thursday trying to cover some of its previous losses against the greenback, where the Aussie reached to its lowest level in seven weeks the day before.
The Aussie recovered on greenback’s weakness and needed correction, where the federal currency is losing momentum against the euro and other major currencies in a correction movement after its previous gains.
However, we could not consider this slight gain for the AUD/USD pair a new wave or a new trend, as the expectations remains for further losses for the pair. China acknowledged that growth is weakening and cut the reserve requirements for rural lenders in a step to support growth which over the short term is a positive impact but over the longer term it is a proof that the nation is starting to suffer from downside pressures on growth and accordingly will affect demand from Australia and pressure aussie negatively.
On Friday both economies will not release any fundamentals, where the pair will move depending on the market sentiment. Trading will remain choppy and with volatility after the US was out of the market on Thursday and Friday will be an early closing day leaving the market with low trading volume and increase the chance for fluctuations.
Originally posted here
