AUD/USD Price Forecast – Australian dollar continues to grind lower

The Australian dollar has fallen a bit during the trading session on Thursday, as we continue to see the 0.70 level as an area of interest. Beyond that, there is a significant amount of support extending all the way down to the 0.68 level. This is a market that has so much support that I am a bit hesitant to sell the Aussie dollar, but obviously there’s not much going on to lift it right now. We need good news out of the US/China trade relations, because if we do get that, then the Aussie dollar will be one of the first places that people put money to. Because of this, the market looks very likely to be a one-way trade, in other words, we could be looking at a situation where you can only buy the Australian dollar on US dollar weakness.

AUD/USD Video 10.05.19

If the US dollar starts to strengthen, I would not be a seller of this pair because quite frankly it will be easier to make money shorting other currencies that aren’t so well supported. That being said, I believe that if the Americans and the Chinese can get it together, that would be extraordinarily bullish sign for the Australian dollar as Australia sends so many of its raw materials to China, meaning that the two economies are completely connected. If the trade deal fails, then you will see money going into treasuries, meaning stronger US dollars. At that point, I would probably be a seller of the New Zealand dollar instead of Australian dollar.

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