AUD/USD Price Forecast – Aussie looking for supportThe Australian dollar has been rather noisy and choppy during trading on Friday, showing signs of support near the 0.72 level. This is an area where you would expect to see a lot of interest based upon the large, round, psychologically significant figure, so therefore it’s not a huge surprise to see this market bounce around in this area.
The Australian dollar has rallied a bit during the day on Friday after testing the 0.72 level for support, where it did of course find it. At this point, it looks as if the market is trying to reassert its upward pressure, as the value hunters continue to look at the Aussie as being cheap. However, it’s very possible that we could break down below the 0.72 level, and if we do I think will go looking towards the 0.7150 level, an area that has been supportive more than once. Ultimately, I think this is a pair that is going to be highly sensitive to the Sino-American trade relations, which of course have been struggling. However, I also believe that there is a certain amount of fatigue when it comes to those headlines and it seems as if the market participants are starting to give less weight to comments coming out of either Beijing or Washington.
This is similar to the noise that occurs around the British pound and the Brexit, and quite frankly I think what we are seeing is people banking on a longer-term move. At this juncture, I believe in buying dips, especially if we get closer to the 0.7150 level. That of course would be a rather good sign, as it has been fairly reliable. Alternately, we could go to the 0.7350 level above which I think is massive resistance.