AUD/USD Price Forecast – Australian dollar all over the placeThe Australian dollar is all over the place after trading on Thursday, as we continue to consolidate overall. With the risk situation out there the way it is, and of course the Sino-American trade relations failing at every step, it’s no surprise that the Australian dollar may struggle.
The Australian dollar has rallied a bit during the trading session on Thursday but continues to be lackluster in its performance as we consolidate overall. I think that the market will probably eventually give us an opportunity to make a longer-term decision, but right now it’s obvious that we are simply bouncing around between the 0.7050 level in the 0.71 level above there. This is a market that will be handing on the words of both US and Chinese officials, so keep that in mind. Ultimately, this market is driven by fear and greed more than most currency pairs, because the Australian dollar is so highly levered to what’s going on in Asia that being said, I believe that we have a perfect recipe for a currency pair that will sell off every time there are glimmers of hope.
This is because it’s becoming increasingly obvious that the Americans and the Chinese absolutely refused to work together, and with that being the case it’s almost impossible for Australian to avoid the various issues that will almost certainly come with being attached to those two economies. Because of this, I suspect that rallies are to be sold, but only for short-term scalping at best. This is not a market that you want to be holding onto for any great length of time in either direction. If we do break down below the 0.70 level, then perhaps we can go down to the 0.68 handle, but I think it’s going to take a lot of good news for that.