AUD/USD Price Forecast – Australian Dollar Drifts Lower

The Australian dollar has initially tried to rally during the trading session on Tuesday, but then rolled over a bit to show signs of weakness. At this point, the Australian dollar has seen a flash crash on Monday, but now it looks as if the market is in fact going to try to reach towards the 0.65 level again. At this point, if the market does find support there then it could try to reach towards the 0.67 handle. That is a level that will attract a certain amount of attention as well, as it has been a negative spot on the chart.

AUD/USD Video 11.03.20

To the downside, if the market does break down below the 0.65 handle, then we could go looking towards the 0.63 level again which was the bottom of the financial crisis. I think that level may have to be retested before we can turn things around, but the situation that we find ourselves in is that the news can change everything in the blink of an eye. That being said, if you get a negative headline it typically works against the value of the Aussie dollar. This will be especially true if it’s China related, or coronavirus related as a slowdown in global trade certainly has an effect on demand for Australian commodities. Pay close attention to the copper market, it generally will give you a “heads up” as to how Australia is about to perform. If we believe that the market is suddenly going to pick back up in China, then Aussie is the way to play. However, if China is still going to be very slow, then it will be reflected in this currency.