The Australian Dollar has been traded on the peak mostly during Friday’s trading session. Reports from Evergrande USD bondholders did not yet receive interest payments mere hours before the deadline. That roughly amounts to US$83.5 million. There was no immediate reply from the company as the world continues watching China for a potential liquidity crisis.

On the other hand the International Monetary Fund’s (IMF) downgrade of Australia’s GDP forecast for 2021 gains major attention. The market’s anxiety as traders await Evergrande’s scheduled bond coupon payment. Furthermore, comments from China’s National Development and Reform Commission (NDRC) suggesting issues of rising raw material prices and power limits tame the Aussie bulls.

Market’s anxiety before Evergrande’s scheduled bond coupon payment joins comments from China’s National Development and Reform Commission (NDRC) suggesting issues of rising raw material prices and power to probe the bulls. On the same line are the scheduled speeches from the US Federal Reserve (Fed) officials, including Chairman Jerome Powell and Vice Chair Clarida.

On the IMF staff concluding statement that Australia is signatory of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CP-TPP) and the Regional Comprehensive Economic Partnership (RCEP) and has been strengthening its network of bilateral free-trade agreements. The strong support of the WTO process is helping to buttress the rules-based international trading system. Australia’s recently amended foreign direct investment framework aims at safeguarding national security.

Sametime Australia’s trade minister Dan Tehan will visit India next week to advance talks on a free trade agreement called the Comprehensive Economic Cooperation Agreement (CECA), an early harvest deal of which is to be concluded by December 2021. For Australia, there are significant growth opportunities in critical minerals, infrastructure, energy and technology, Tehan said in his address Wednesday. “Both countries are committed to achieving an early harvest announcement on an interim agreement to liberalise and deepen bilateral trade in goods and services, and pave the way for an early conclusion of full CECA,” he said.

Moving on, a slew of Federal Reserve (Fed) speakers, including Chairman Jerome Powell, are slated for speeches during Friday, likely making the dull active going forward. Also important is the US New Home Sales for August, expected 0.7M versus 0.708M prior, as well as headlines relating to China’s embattled real-estate firm and US stimulus.

AUD/USD 4 Hour Chart:

Support: 0.7239 (S1), 0.7185 (S2), 0.7147 (S3).

Resistance: 0.7332 (R1), 0.7370 (R2), 0.7424 (R3).

Amidst this above catalysts Aussie dollar is on uptrend. We expect a bullish trend for AUD/USD.