AUD/USD Price Forecast – Aussie powers forwardThe Australian dollar rallied significantly during the trading session on Thursday, reaching two fresh, new highs. By heading towards the 0.73 level, and more importantly breaking above the 0.7250 level, it looks as if the Australian dollar is ready to continue going higher. In general, I believe that this market has a specific level and focus.
The Australian dollar has rallied significantly during the trading session on Thursday, reaching as high as 0.7290 before the Americans got on board. The Australian dollar is a proxy for global growth, and with all of the issues involving the Sino-American trade spat, it’s not surprising that the Aussie has been difficult to deal with lately. In general, I think that the market is probably going to go looking towards the next major resistance barrier above, which is the 0.7350 level. That’s an area that has proven to be important more than once, so it would not surprise me at all to see this market turned around and go test that area. Obviously, we have a lot of bullish pressure in the market suddenly and I don’t think that can be underestimated.
The US dollar is taking it on the chin against other currencies during the day such as the Euro and the Pound, so it makes sense that the Aussie will get a little bit of relief. This will be especially true as the Chinese have talked about lifting tariffs against non-US companies, which in theory should help liberalize Chinese markets, while at the same time punishing the Americans. This should give the Chinese more demand from other countries, and perhaps help Australia sell more raw materials to China. However, we are still in the longer-term downtrend so don’t expect this moved to break above the 0.7350 level very easily.