AUD/USD Forecast – Australian Dollar Has Noisy Session

AUD/USD Forecast Video for 12.10.23

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has gone back and forth during the course of the trading session on Wednesday, as we continue to see a lot of noise. We are sitting just above the 0.64 level, which of course is an important level from a psychological standpoint. If we were to break down below that level, then I think the Aussie continues to fall. We have CPI numbers coming out on Thursday, and that could be another major issue going forward. After all, the market seemed to somewhat ignore the PPI numbers in the United States on Wednesday, that the came out twice as hot as anticipated.

Inflation continues to be a major issue, and of course people pay close attention to whether or not the Federal Reserve is going to keep their interest rates very tight. They continue to suggest that they are, but there may not be anymore interest rate hikes. Nonetheless, the overall global economy is likely to continue to suffer, and if that’s going to be the case, then it makes quite a bit of sense that we would see the Australian dollar struggle, due to the fact that the Aussie is so highly sensitive to commodities and of course global growth.

If we were to turn around and break above the 50-Day EMA, then it’s possible that the market could go reaching toward a 0.65 level. The 0.65 level of course is an area that a lot of people would look at as important, and breaking above that could be a “shot across the bow” for the bearish traders. On the other hand, a breakdown below that 0.64 level shows just how dominant the US dollar is, and it does make a certain amount of sense that we could see that happen, due to the fact that the US dollar is considered to be a safety currency to begin with, and of course people may try to move assets back into the United States away from other countries. While Australia itself is not necessarily a dangerous place to be, the US dollar continues to be king of all currencies, and the next couple of weeks could show that.

For a look at all of today’s economic events, check out our economic calendar.