AUD/USD Price Forecast – Australian Dollar Breaks Ou tAagain

The Australian dollar has broken out to the upside during the trading session on Friday, finally overcoming the 0.78 handle. That being said, the next big target will be the 0.80 level, an area that of course is a large, round, psychologically significant figure, and would attract quite a bit of attention.

With that being said, I believe that what we are seeing here is an expression of the commodity trade, and the fact that copper markets had gained 3% early in trading. That is a major export of Australia, and recently we have seen some of the major companies in Australia report Blockbuster earnings due to iron sales in China.

In other words, the commodity trade is “full on” and people are looking to get exposure one way or the other. The Australian dollar of course is highly sensitive to all of these markets, and therefore it makes perfect sense that we would continue to see people interested in this market. For what it is worth, we have just broken above the top of the flag that measures for a potential move all the way to the 0.86, although I do think that the area 0.80 is going to take a lot of effort to get through.

In other words, we will more than likely be positive, but I suspect we will also be very choppy at one point or another. I anticipate that the market will probably behave at the 0.80 level the same way it did at 0.78 over the last month.