AUD/USD Price Forecast – Australian Dollar Continues to Levitate
The Australian dollar has shown itself to be rather noisy, with an initial pulled back finding plenty of buyers overnight. This should not be a huge surprise, because the Australian dollar has been able to hover right around the 0.75 level for well over a week now. The 200 day EMA sits underneath and is starting to curl higher, so I do think that we are starting to see a major shift in the overall attitude of this pair. The large “W pattern” underneath does suggest that we could go as high as 0.78, but obviously we need things to kick off a little bit more drastically to make that happen.
AUD/USD Video 29.10.21
It is worth noting that the two-year notes in Australia blew out last night, raising the interest rates as the Reserve Bank of Australia chose not to purchase any of those short-term notes. Because of this, interest rate shot straight up in the air, as demand for the notes was laid bare. With that being the case, the Aussie will start to offer a positive carry given enough time, and a lot of traders are out there trying to front run this event. Furthermore, the United States dollar has been suffering at the hands of other currencies for some time now, and the Australian dollar has a little bit of catching up to do. As Australia reopens, then it is likely that we will continue to see the Aussie dollar show signs of resiliency. Beyond that, as the world reopens, hard commodities are still necessary, and that of course has a major influence on the Australian economy itself.
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