AUD/USD Price Forecast – Australian Dollar Gets Relief Rally as Dollar Fades

The Australian dollar has rallied significantly during the trading session on Thursday from extremely low levels. That being said though, there are plenty of areas where the Australian dollar is going to run into trouble above, so quite frankly this is not the time to be buying. IEC the 0.66 level as an area that will be little bit resistive, but after that, it’s very likely that the market could go towards the 0.67 handle. That is an area that is crucial from a longer-term standpoint, and therefore I would expect a lot of selling in that area.

AUD/USD Video 28.02.20

The Australian dollar of course is very sensitive to what goes on in Asia, and then by extension China. As long as there is a lot of disruption in China, it will have a major influence on what happens with the Australian economy, as they supply so much in the way of commodities and raw materials for the Chinese economic engine, not only from the export side but also from the construction side. A perfect proxy for the Australian dollar most of the time is going to be the copper market, which have been taken out to the woodshed. Because of this, the Australian dollar will continue to suffer and for myself, I am not interested in buying the Aussie dollar until it closes above the 0.6775 handle on at least a daily chart, if not a weekly chart. The Australian dollar still has further to go to the downside given everything that’s going on in Asia.