AUD USD Price Forecast – Australian Dollar Continues Sideways Dance
The Australian dollar has rallied a bit during the trading session on Thursday as we have seen a continuation of the overall grind higher. We are still below the 0.73 level, which I think is going to be a bit of a resistance barrier. Whether we can break out of they are not is a completely different question but as we are heading into the very last day of the year, it is a bit much to think that we are suddenly going to take off with a serious lack of liquidity in place. Most people now are starting to think about New Year’s Eve, and not so much about trading.
AUD/USD Video 31.12.21
Keep in mind that the Australian dollar is highly levered to risk appetite so will have to pay attention to what is going on around the world. As things stand right now, it does seem like the markets willing to drift a little bit higher but it is going to need some type of catalyst to get going. I suspect that catalyst is going to be the jobs number late next week, and of course when people start to put money back to work anyway.
Looking at this chart, grinding higher, but we are also threatening to run out of momentum and that of course is something that needs to be paid close attention to as well. The 50 day EMA sits just below and in theory should offer support, so I think with this sets up for is a lot of chop of the next couple of trading sessions as we try to figure out where we are going longer term.
For a look at all of today’s economic events, check out our economic calendar.