AUD/USD Price Forecast – Australian Dollar Gives Back Gains After Surge Higher

The Australian dollar has rallied significantly during the trading session after the employment figures came out much stronger than anticipated. However, the market has also given back quite a bit of the gains later in the day as we continue to struggle for traction. Remember, the Australian economy is highly levered to the Chinese mainland so it’s difficult to imagine a scenario where we simply take off to the upside without a good headline coming out of the US/China trade situation. Yes, we get the headlines of a “agreement to agree” on the Phase 1 part of the deal. However, the details are very light, and therefore there is in a whole lot to go on.

AUD/USD Video 20.12.19

Looking at the chart, the 200 day EMA is coming close to price action right now and it’s likely that we will continue to see that come into play. However, the 50 day EMA is starting to turn higher, and therefore it’s likely that the market would see a lot of choppy behavior as the longer term and shorter-term traders converge on price. That being said though, this is the wrong time of year to expect a major move, as the volume simply won’t be there. Quite frankly, the only thing that’s going to move this market for a bigger move is going to be the US/China trade situation. All things being equal, the lows keep getting higher, and now it looks as if we are trying to build up the pressure to the upside. However, it may not be happening as we continue to focus more on the holidays than anything else.

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