AUD/USD Price Forecast – Australian Dollar Attempting to Recover

The Australian dollar has pulled back just a bit during the course of the trading session on Friday but then turned around to rally again. That being said, the market has been very negative over the longer term, and I think that continues as there are a lot of concerns around the world. Ultimately, this is a market that I think will have to deal with the idea of China slowing down, and of course global trade in general slowing down. This drives down the need for Australian commodities on the Chinese mainland, which of course is a major factor in this currency pair.

AUD/USD Video 04.10.21

Furthermore, Australia still has some of the most draconian pandemic lockdown rules, and that of course does nothing to help the economy longer term. If there is more of a “risk off” attitude around the world, that will continue to favor the US dollar. With rates rising in the 10 year notes in America as well, that also favors the greenback. At this point in time, the market could very well be very noisy, but I am still looking for signs of exhaustion that I can sell off. I would be especially interested near the 0.7250 level, and again at the 0.73 handle.

To the downside, we could go down to the 0.71 handle, maybe even the 0.70 level if things truly kicked off. All things been equal, I expect more chop than anything else but with the downward tilt. The market has been very noisy to say the least, and quite frankly I think the markets have no idea what to do with themselves. As a general rule, that is a negative thing.

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