AUD/USD Price Forecast – Australian Dollar Initially Rallies but Gives Up Gains

The Australian dollar has rallied initially during the trading session on Wednesday but gave back the gains to show a lackluster performance yet again. Quite frankly, this point it looks as if the Australian dollar has nowhere to be so that might be something that we have to pay attention to. That being said, the Australian dollar is of course highly sensitive to the reopening trade and commodities, so pay attention to hard commodities and what they are doing. However, what I will note is that as of late the correlation has not held out.

AUD/USD Video 27.05.21

Perhaps currency traders are either taking a break or punishing Australia for the lockdown that we are currently seeing. Maybe they are punishing Australia for the spat between that country and China, or perhaps it is something completely unknown by myself. Nonetheless, the one thing that I think you can see is that the market is choppy and sluggish to say the least, so quite frankly I do not waste too much time dealing with it.

If you are a short-term back-and-forth type of trader, then you could see a little bit of range bound trading set ups, but obviously on the short-term charts. With this being the case, I think what we are going to see is a lot of noisy behavior more than anything else, and quite frankly I do not have any interest in trading this pair currently. I think that we will probably see more of this action over the next several weeks and therefore this is a market that I am watching, but not trading.

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