AUD/USD Price Forecast – Australian Dollar Continues Same Dance

The Australian dollar has rallied during the trading session on Wednesday to break above the 0.71 handle. Having said that, the market still has plenty of noise around this area to continue to keep the market on its toes. I believe that we are essentially going to bounce around as we await to see what happens with stimulus coming out of the RBA, and of course global growth. Beyond that, and interest-rate cut coming out of Canberra will put downward pressure on the Aussie dollar, and as long as the Americans are still petering around with the idea of stimulus, until that comes the US dollar might be stronger than people anticipated.

AUD/USD Video 22.10.20

To the upside, we have the 50 day EMA but right now I am essentially looking at this as a market that is trying to bounce around between the 0.70 level on the bottom and the 0.71 level on the top. The market has been very choppy and noisy over the last month or so, as we are trying to figure out whether or not the global economy goes back to normal. The pandemic numbers are starting to climb in various places around the world, so that of course has people wondering whether or not there is going to be any significant growth over the longer term. If that does in fact become a problem, it is almost certainly negative for the Aussie dollar longer term. The meantime though, it looks like we are probably ready to simply dance back and forth in order to try to figure out where we go next.

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