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AUD/USD Price Forecast – Australian Dollar Continues to Attempt Recovery

By:
Christopher Lewis
Published: Oct 5, 2021, 13:53 UTC

The Australian dollar fell initially during the trading session on Tuesday, but then turned around to show signs of strength again.

AUD/USD Price Forecast – Australian Dollar Continues to Attempt Recovery

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The Australian dollar fell a bit during the course of the trading session on Tuesday but has turned around to show signs of life again in order to challenge the 0.73 level. That of course is the area that has been so difficult recently, and therefore it is not a huge surprise to see that we are testing this area yet again. Because of this, it is also worth noting that the 50 day EMA is sitting right there as well, so that of course will have a certain amount of influence to the downside. If we do break above all of that, then you may have an argument for buying, but right now it just simply looks like the market is trying to come up with some type of recovery plan.

AUD/USD Video 06.10.21

That being said, there are a lot of things in China right now that could cause major issues, due to the fact that the credit situation in the country is tenuous at best. It will be interesting to see how things play out, because Australia also is highly sensitive to the commodity markets, and it is worth noting that iron and several other hard commodities such as palladium have been taken a bit of a nosedive. This has a certain amount of influence on the Aussie dollar itself as the Australian mining sector is such a huge part of its economy. Because of this, I like the idea of paying close attention to the commodity markets right along with the Aussie dollar. Furthermore, the US dollar has recently been strengthening, so pay attention to the US Dollar Index as well.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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