AUD/USD Price Forecast – Australian Dollar Continues to Hug 50 Day EMA

The Australian dollar has gone back and forth during the trading session on Wednesday as we continue to hang about the 50 day EMA. The 50 day EMA is of course an area that seems to be attracting a lot of attention, and therefore it is likely that we will continue more of the sloppy and sideways action that we have been in for a while. Furthermore, I believe this is a market that is simply trying to kill time in order to decide its next move. When I find interesting is that the US dollar is getting hammered against almost everything, but the Aussie itself does not seem to be taking advantage of this anymore.

AUD/USD Video 03.06.21

The Australians are in the midst of a spat with the Chinese, so that could be a big issue, just as the state of Victoria has started the lock down process, so perhaps Australia is being punished for that as well. That being said, the new lockdown was after we started going sideways, so quite frankly this is a market that is underperforming at the moment, so it is worth noting that perhaps some money managers out there are paying attention to the Chinese credit impulse, which is suggesting that perhaps there might be something nefarious under the water of the Chinese economy.

For what it is worth, the Chinese stock markets have looked rather rough as of late, although in the short term they have rallied just a bit. Nonetheless, this is a market that I think simply goes back and forth in this tight range.

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