 Hello and welcome to the chart of the week video with me David Madden Today's date is Friday the 23rd of August 2019 and the time has just gone 1118 British summer time and this week's chart of the week is the Australian daughter versus the US daughter And I've taken the wider view We can see here in the chart that the Australian daughter versus the US daughter the Aussie daughter as referred to has been in a solid downward trend trend for quite some time and And On this basically this video is all about discussing is that downward trend gonna continue? And we are we gonna see further losses or could we potentially see a rebound in the price of you in the in the Aussie daughter now Well, one of the things that's going on in the Australian economy is we've seen a couple of interest rate cuts by the Reserve Bank of Australia in recent months The Australian economy is clearly slowing down a strange economy is very much tied in with what's going on in China China's slowing down the US China trade situation is hanging over the markets And that's part of the reason why the the Australian dollar has cooled so much the Australian dollar is often gets referred to as one of the commodity currencies and essentially What that means is that the movements in the online commodity markets often determine or influence the move In the in the so-called commodity currencies selects of the Australian dollar the Australian dollar the Canadian dollar So we can see here that the Australian dollar has been a very clear downward trend And if you take a look at what's going on in the copper market China is a big importer of copper China's slowing down Which it is their demand for copper 10 the price of copper tends to be Tends to be pushed lower I'm not saying there's a complete correlation between the two markets But it's worth keeping if you're gonna be trading the Australian dollar versus the US dollar as we're keeping on What's going on in copper we can see at the wider term view We can see at the copper market has been pushing lower And we can also note that The current level right and copper isn't too far away from the early August lows and those early August lows We can see have been a fairly significant area of support recently and If we do see a significant break below the those recent loads the copper market that could Signal like that could have a bearish consequence for the Australian dollar It might not but it is worth keeping eye on seeing as both markets have been under pressure recently because both markets are Tied in what's going on in Australia Now we can see here that the last two sessions the Australian dollar has been trading a fairly narrow range So this could be kind of this consolidation period could reflect a bit of a cooling off after the recent aggressive sell-off It could also be become before the next leg lower Or maybe this could be the bottom Forming at the market is going to push higher if the wider negative trend does continue and we take out the recent lows We could be likely heading back down towards This this spike lower here in a zero spot six six seven seven and a break for all that could take us back down towards zero spot six six But if you do see a push higher in the Australian dollar versus the US dollar this region here It's in around the zero spot 68 30 markets kind of just above the recent highs here And just below the kind of support here. So it's fair there. It's a bit of a zone. It's not a precise Figure to be exact because the lows here in in in In mid in mid mid-June or in around zero spot 68 30 been not quite there and the highs We're just we're just below zero spot 68 30 years So keep an eye out for this zone if you do much to press higher if you do take out that metric keep an eye For the zero spot 69 area. There's a bit of a bit of a consolidation In that area in a few occasions It also coincides with the fifth day moving average this blue line here Which in a few occasions has acted as both visit as a resistance and also a support Which makes it more likely that it will be an important metric in the near term Taking a look at this red line here the 200 a moving average we can see in a few occasions We that metric has proved to be a resistance point For the Australian dollar US dollar So I saw you really if you get back above that That that red line the dirty moving average which comes to play at zero spot 70 51 Which is admittedly quite a far far away at the moment It's certainly really if you get above that line could then we be that metric because they would begin to think You know what? Maybe the wider downward trend has come to an end in the Australian dollar Now if you're gonna be trading the Aussie dollar versus the US dollar, please keep an eye out for the Jackson Wholeson posium today 1500 British summertime Jeremy drum howl the head of the Federal Reserve due to speak This will be close to watch. There's a lot of talk about a fed cutting rates next month But then again on the other hand is an argument to say the Fed should stand still All employment is very low inflation is on the rise and it's comfortably are stripping or earnings Retail sales are strong on the rest as an argument from from the economic indicators point of view the Fed should hold still If you are trading the Aussie dollar next Tuesday and the early hours of Tuesday morning The the deputy head of the Reserve Bank of Australia guide a bell is speaking in the early hours So any kind of comments from the central bank could also influence the Australian dollar If you have any comments to make on this video or any of the other videos We've made here at CMC markets, please feel free to name review and reviews. Thank you very much