AUD/USD Price Forecast – Australian dollar falls for Tuesday

The Australian dollar has broken down through minor support during early trading on Tuesday, which was found at the 0.6950 level. Ultimately, this is a market that looks very likely to struggle a bit, at least until we can get the Humphrey Hawkins testimony out of the way. Once the Federal Reserve chairman is done testifying, then the markets can start to focus on other things. At this point traders will be paying attention to see whether or not the Federal Reserve looks likely to give 25 or 50 basis point cuts, and of course make sure that they are in fact going to make cuts.

AUD/USD Video 10.07.19

If they do, that could help lift the Australian dollar against the US dollar as it will drive up demand for gold, and of course other commodities as well. This is a market that of course is also sensitive to the US/China trade Mets that we have going on right now, which seems to be never ending. Ultimately, this is a market that is going to pay attention to the rhetoric coming out of both Beijing and Washington DC, so keep that in mind.

We are in the middle of major support that extends from 0.70 down to the 0.68 level, so as long as we are in this area I’m still thinking that eventually the buyers will make their move. If we were to break down below the 0.68 level, that would be horrible for the Aussie. I believe we are still trying to build that huge base for a change in trend.

Please let us know what you think in the comments below