AUD/USD Price Forecast – Australian dollar grinds lowerThe Australian dollar fell during the trading session on Thursday, as we had seen a bit of US dollar strength overall. Quite frankly though, this is hardly something to be concerned about.
The Australian dollar broke down a bit slightly during the trading session on Thursday, but quite frankly we are in a reasonable range to follow, so at this point we may drift a little bit lower but it should end up being a buying opportunity for the Aussie. Keep in mind that the Friday session of course has the jobs figure coming out, and that can move the currency markets rather violently. However, by the end of the day we quite often find ourselves at roughly where we started. With that in mind, it’s likely that we will need to see that noise get out of the way to put serious money to work but currently the range that we have been in remains rather stringent.
AUD/USD Video 05.04.19
The 0.7050 level underneath seems to be where buyers have been stepping in, and on the longer-term charts it’s very obvious that the 0.70 level is major support that extends down to the 0.68 level based upon monthly charts. With that, I’m very comfortable buying the Australian dollar on dips but I recognize occasionally we will have very noisy conditions that will be difficult to deal with. Ultimately, this is a short term back and forth type of market as we await some type of US/China trade relations agreement.
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Remember that Australia is highly levered to the Chinese economy, so if the Chinese economy is going to do well, so will Australia. Traders around the world use the Australian dollar as a proxy for the Chinese economy so you can believe that they will be buying here is that trade agreement finally gets agreed to.
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