AUD/USD Forecast – Australian Dollar Tries to Stabilize

AUD/USD Forecast Video for 28.08.23

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has gone back and forth during the trading session on Friday, hanging onto the 0.64 level. The 0.64 level was the bottom of a recent consolidation that a lot of people will be paying attention to, and therefore it makes a lot of sense that we would see noise in this general vicinity. With that being said, if we do break down below the 0.64 level, then it’s likely that we see a drop down to the 0.63 level.

Alternatively, if we can rally from here, the 0.65 level comes into the focus of traders, as it has been resistance recently. A lot of this will come down to the Federal Reserve and its monetary policy, or perhaps better put, what people believe it will be. If we can break above the 0.65 level, then it opens up the possibility of a move to the 0.66 level, but I think it would take a significant turnaround by Jerome Powell to make that happen.

Either way, I would anticipate a lot of noisy trading in the short-term, followed by perhaps a more sustainable rally or fall in roughly 2 weeks. After all, traders are coming back from summer vacation, and that will bring a lot more liquidity into the market. You should also keep in mind that the Australian dollar is highly sensitive to commodity markets and of course global growth. Both of those are a bit of a mixed bag right now so to be interesting to see how this plays out but the “push/pull” attitude of the market probably continues to be the mainstay here.

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