AUD/USD Price Forecast – Australian Dollar Finds Its Footing

The Australian dollar has fallen rather significantly during the course of the trading session on Friday, reaching down towards the 0.73 level. We have bounced significantly from there, so it looks as if the Australian dollar is trying to stabilize there. Ultimately, I think this is a market that will eventually bounce from here, despite the fact that the Reserve Bank of Australia looks to be a bit loose. After all, there is more of a “risk on flavor” after the jobs number, and it is quite often the case that if the jobs number ends up being better than anticipated, the US dollar gets hammered.

AUD/USD Video 08.11.21

It is also worth noting that a lot of pressure will be found in the markets overall, especially as the commodity markets continue to flex its muscles. The Australian dollar of course is very sensitive to commodities and risk appetite in general, so pay close attention to both. If we can break above the 0.74 level on a daily close, it is very likely that we would turn around and go much higher. At that point, I be looking for a move towards the 0.75 level where we would have an even bigger fight on our hands.

Nonetheless, this is a market that I think you can expect a lot of volatility, and with that being the case you need to be cautious about position size, but if this market starts to turn around on a somewhat steady basis, I am going to get aggressively long again. The selloff has been a bit overdone, and with Australia reopening, it could very well propel this market much higher. Pay attention to the US Dollar Index as well, because it seems to be pulling back from a resistance barrier.

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