AUD/USD Price Forecast – Australian dollar falls again

The Australian dollar fell again during trading on Thursday as the arrest of a prominent Chinese businesswoman has caused concerns as to whether or not the United States and China will be able to flush out some type of deal.
Christopher Lewis
AUD/USD daily chart, December 07, 2018

By now, you’ve probably heard that the Canadians have arrested a Chinese businesswoman on the request of American authorities. This of course could be a bit of a thorn in the side of the negotiation situation between the Americans and the Chinese, so of course the Australian dollar has suffered as a result. Remember, the Australian dollar is highly sensitive to the Chinese economy, which of course is greatly influenced by the negotiations going on right now between the Americans and the Chinese.

AUD/USD Video 07.12.18

Traders shorted everything related to China and risk appetite when the news hit the wires, and of course the Aussie fell towards the support of the previous downtrend line that had been so resistive. However, I think what will happen next is a bit of consolidation as we go into the jobs figure, which is typical. The jobs figure coming out at 8:30 AM Eastern Standard Time in America will of course have a massive influence on the US dollar, which of course will have a massive influence on this pair. I believe this point, the market is going to continue to move with the headlines involving China overall though, so I anticipate that by the end of the day we will be roughly where we are now, as we have been hovering around the 0.7250 level for some time. Ultimately, this is a market that is going to continue to be very difficult to deal with. I would stay out of it until Monday morning, as there will certainly be headlines over the weekend that can move this market as well.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.