Forex Market: AUD/USD trading outlook for December 14th

Friday’s trade saw AUD/USD within the range of 0.7183-0.7269. The pair closed at 0.7189, losing 1.26% on a daily basis, or the most since November 6th, when it depreciated 1.34%. It has been the first drop in the past three trading days. In weekly terms, AUD/USD fell 2.07% during the current week, or the most since the week ended on September 27th, when it lost 2.30%. The pair has gone down 0.54% so far during the current month.

No relevant macroeconomic reports and other events, which may influence AUD/USD are scheduled for release on Monday (December 14th).

Correlation with other Majors

Taking into account the week ended on December 13th and the daily closing levels of the currency pairs involved, we come to the following conclusions in regard to the strength of relationship:

AUD/USD to USD/CHF (0.5227, or strong)
AUD/USD to USD/JPY (0.3798, or moderate)
AUD/USD to NZD/USD (0.1203, or weak)
AUD/USD to GBP/USD (-0.2342, or weak)
AUD/USD to EUR/USD (-0.4796, or moderate)
AUD/USD to USD/CAD (-0.6346, or strong)

1. During the examined period AUD/USD moved strongly in one and the same direction with USD/CHF, while moving strongly in the opposite direction compared to USD/CAD.

2. AUD/USD moved to a moderate extent in one and the same direction with USD/JPY during the week, while moving to a moderate extent in the opposite direction compared to EUR/USD.

3. The correlation between AUD/USD and NZD/USD, AUD/USD and GBP/USD was insignificant during the period in question.

Daily and Weekly Pivot Levels

By employing the traditional calculation method, the Monday pivot levels for AUD/USD are presented as follows:

Central Pivot Point – 0.7214
R1 – 0.7244
R2 – 0.7300
R3 – 0.7330

S1 – 0.7158
S2 – 0.7128
S3 – 0.7072

By using the traditional method of calculation again, the weekly pivot levels for AUD/USD are presented as follows:

Central Pivot Point – 0.7235
R1 – 0.7297
R2 – 0.7406
R3 – 0.7468

S1 – 0.7126
S2 – 0.7064
S3 – 0.6955