empty
InstaForex - Official partner of Dragon Racing
InstaForex - Official partner of Dragon Racing
This section is designed for those who are just starting their trading journey. InstaForex educational and analytical materials will meet your training needs. Our experts' recommendations will make your first steps to trading success simple and clear.
Start as Beginner
How to start trading
Useful information
Training and recordings
InstaForex innovative services are an essential element of productive investment. We strive to provide our clients with advanced technical capabilities and make their trading routine comfortable as we are recognized as the best broker in this regard.
Become Investor
PAMM System
ForexCopy System
Passive investments
Partnership with InstaForex is beneficial and top-tier. Join our affiliate programs and enjoy bonuses, partner rewards, and the possibility to travel with the team of the world-renowned brand.
Become Partner
Main Page
Partner Area
Advantages for Affiliates
Registration
This section contains the most lucrative offers from InstaForex. Receive bonuses when topping up an account, compete with other traders, and get real prizes even when trading in a demo account.
All Promo Campaigns
Bonuses
Contests
Events
Holidays with InstaForex are not only pleasant but also useful. We offer a one-stop portal, numerous forums, and corporate blogs, where traders can exchange experiences and become successfully integrated into the Forex community.
Full details
Forums
We are in social networks
Forex humour
Forex Portal
InstaForex is an international brand created in 2007. The company provides services for online FX trading and is recognized as one of the world's leading brokers. We have won the trust of more than 7,000,000 retail traders, who have already appreciated our reliability and focus on innovations.
Learn More
History
Why Choose Us
InstaSport
Regulation
Company News
Awards
InstaForex Stars
InstaForex Offline
Headquarters
Key documents
Social Responsibility
19.06.2024 05:07 PM
Three reasons to buy the Australian Dollar
Open trading account Open demo account

Disappointing statistics on retail sales in the United States and the Reserve Bank's statement on a possible increase in the cash rate allowed AUD/USD to go on a decisive offensive. The Australian dollar, supported by divergence in monetary policy, strong global risk appetite and the recovery of the Chinese economy, can work wonders. However, first, it needs to be released from the consolidation cage.

At its June meeting, the RBA left the key rate at 4.35% but noted that it was necessary to remain vigilant about inflation. Michelle Bullock said that the central bank discussed the possibility of resuming the cycle of tightening monetary policy, which allowed the futures market to increase the chances of such an outcome in August from zero to 20%. Australian bond yields and AUD/USD have risen.

While inflation is slowing in the United States and other developed countries, it is much slower in Australia. This leaves the issue of raising the cash rate open. The Fed, against the background of slowing retail sales, inflation and the economy as a whole, is likely to ease monetary policy in September. Divergence is the guiding star of AUD/USD.

Dynamics of retail sales in the USA

This image is no longer relevant

The ongoing rally of the S&P 500 and the recovery of the Chinese economy adds fuel to the fire of the potential exit of AUD/USD from consolidation in the range of 0.658-0.67 with a further continuation of the northern campaign. So, in May, retail sales in China increased by 3.7%, and exports jumped by 7.6%. Nevertheless, the improvement in the state of China's foreign trade is a double–edged sword. The EU has already imposed duties on imports of electric vehicles, and the US has recently increased them. If Donald Trump comes to power, the situation risks worsening significantly, putting pressure on the yuan and the Australian dollar.

Despite a 3.6% increase in Chinese exports to the US in May, contrary to past trends, exports to Asian and Latin American countries are accelerating. Conversely, exports to the EU and the US have slowed due to the creation of intermediate links. The most popular destinations are Mexico and Vietnam. Therefore, if Washington wants to stifle China, it should impose tariffs on imports for intermediaries.

Dynamics and Structure of Chinese Exports

This image is no longer relevant

This image is no longer relevant

Thus, the divergence in the monetary policies of the Reserve Bank of Australia and the Fed, high global risk appetite as evidenced by the S&P 500 rally, and the recovering Chinese economy create a tailwind for AUD/USD. However, the US presidential elections and the risk of Donald Trump coming to power with his protectionist policies are major restraining factors for the pair.

Technically, on the daily chart, AUD/USD shows an attempt by the bulls to break through the upper boundary of the consolidation range of 0.659-0.67. Securing quotes above the moving averages and fair value suggests that they might succeed. It makes sense to buy as long as the pair trades above 0.6645.

Marek Petkovich,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
All Analytics
Wave analysis
EUR/USD Analysis on May 7, 2025 The wave pattern on the 4-hour chart for EUR/USD has transformed into a bullish structure. I believe there's little doubt that this transformation has occurred solely
Chin Zhao
19:51 2025-05-07 +02:00
1015
Fundamental analysis
The Fed to Hold Rates Despite Pressure The euro and the pound remain range-bound ahead of a key meeting of the U.S. Federal Reserve, where officials are expected to leave interest rates unchanged as they await clarity
Jakub Novak
19:49 2025-05-07 +02:00
1015
Breaking Forecast Trading Plan Cryptocurrencies USD/RUB Russian Economy Video Analysis
Trading Instruments
EURUSD GBPUSD USDCHF USDCAD USDJPY AUDUSD EURGBP EURJPY NZDUSD EURNZD Silver Gold #CL #USDX COVID-19 Bitcoin
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

The Fed to Hold Rates Despite Pressure

The euro and the pound remain range-bound ahead of a key meeting of the U.S. Federal Reserve, where officials are expected to leave interest rates unchanged as they await clarity
Jakub Novak 19:49 2025-05-07 UTC+2

USD/JPY. Analysis and Forecast

Today, the Japanese yen reached a new daily low, which contributed to the rise of the USD/JPY pair to nearly the 143.50 level. This increase is driven by positive global
Irina Yanina 19:33 2025-05-07 UTC+2

NZD/USD. Analysis and Forecast

The NZD/USD pair is pulling back from a more than two-week high in the 0.6025–0.6030 level. Currently, the quotes have fallen below the psychological level of 0.6000, signaling a pause
Irina Yanina 19:31 2025-05-07 UTC+2

U.S. Trade Deficit Hits Record High in March

The euro responded with an increase following the news that the U.S. trade deficit rose to a record level in March this year, as companies rushed to import goods, including
Jakub Novak 10:48 2025-05-07 UTC+2

Markets Will Not Be Dictated To

The market's eyes have finally opened. Donald Trump is not the kind of president who would lower tariffs in response to reciprocal reductions from other countries. The occupant
Marek Petkovich 09:56 2025-05-07 UTC+2

Is It Worth Hoping for a Strong Market Rally? (There is a high probability of continued growth in #SPX and #NDX)

Equity markets have improved, demand for cryptocurrencies has risen, yet gold prices dropped sharply after a local rally. Meanwhile, the U.S. dollar has remained almost unchanged against major currencies
Pati Gani 09:28 2025-05-07 UTC+2

USD/JPY: Is Further Decline Inevitable?

The Bank of Japan left its monetary policy unchanged during the monetary policy meeting on May 1. In the "Outlook for Economic Activity and Prices" report, the Bank lowered
Kuvat Raharjo 09:28 2025-05-07 UTC+2

Gold Returns to Growth

Gold has resumed its upward movement as investors analyzed trade-related comments from U.S. Treasury Secretary Scott Bessent while awaiting the Federal Reserve's decision on interest rates. Bessent recently stated that
Jakub Novak 09:14 2025-05-07 UTC+2

What to Pay Attention to on May 7? A Breakdown of Fundamental Events for Beginners

Very few macroeconomic events are scheduled for Wednesday, and in any case, they are unlikely to have any meaningful impact on either of the currency pairs. The euro remains
Paolo Greco 06:55 2025-05-07 UTC+2

GBP/USD Overview – May 7: Trump Didn't Get a Call from China, Had to Back Down

On Tuesday, while the euro remained stuck in a flat trend, the GBP/USD currency pair began a new upward move. The rally started on Monday, but during the U.S. session
Paolo Greco 03:35 2025-05-07 UTC+2

Top analytics

Relevance up to 03:00 2025-05-08 UTC--4
EUR/USD – May 7th: Bulls Are Reversing the Trend
10:56 2025-05-07
Technical analysis
Relevance up to 03:00 2025-05-08 UTC--4
Gold Returns to Growth
09:14 2025-05-07
Fundamental analysis
Relevance up to 20:00 2025-05-07 UTC--4
EUR/USD Overview – May 7: The Fed Meeting Becomes the Dollar's New "Headache"
03:35 2025-05-07
Fundamental analysis
Relevance up to 20:00 2025-05-07 UTC--4
GBP/USD Overview – May 7: Trump Didn't Get a Call from China, Had to Back Down
03:35 2025-05-07
Fundamental analysis
Relevance up to 00:00 2025-05-08 UTC--4
What to Pay Attention to on May 7? A Breakdown of Fundamental Events for Beginners
06:55 2025-05-07
Fundamental analysis
Can't speak right now?
Ask your question in the chat.
Widget callback
Callback widget
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.