AUD/USD Price Forecast – Australian dollar breaks through support

The Australian dollar broke down below the 0.70 level, which of course was the massive support that we had seen previously, and of course it is a major round figure that will come into play as well. I think that the Australian dollar is being punished for its close proximity to the Chinese economy, and of course the situation between the Americans and the Chinese. As long as that’s an issue, I suspect that Australia will suffer.

AUD/USD Video 03.01.19

There has been a general “risk off” attitude to the markets during the session, so it makes sense that the US dollar will strengthen against riskier commodity currencies such as the Aussie. Beyond that though, we are at the very beginning of the year, so there is the possibility that a lack of liquidity could cause some issues as well. Quite frankly, a lot of the big players are probably waiting for the first jobs figure to come out in order to put a lot of money into the Forex markets. There is always a bit of a lull at the beginning of the year, so this action mustn’t being taken as gospel. I think you still look to the downside, because quite frankly we haven’t been able to rally for some time. However, you may need to be very patient to realize profits. Fading rallies should continue to be the best way to play this market.