AUD/USD Price Forecast – Australian dollar jumps on Trump comments

The Australian dollar jumped during the trading session on Friday, after finding support yet again near the 0.7325 handle. Beyond that, President Trump tweeted that he thought of the central banks around the world were taken advantage of keeping interest rates lower while the United States continue to raise theirs. Traders around the world thought this was a signal the perhaps we were stepping away from interest rate hikes at the Federal Reserve, something that the President has no control over.
Christopher Lewis
AUD/USD daily chart, July 23, 2018

The Australian dollar rallied quite significantly during the Friday session as we continue to find plenty of demand near the 0.7350 region. However, this was exacerbated on Friday by Donald Trump suggesting that the central banks around the world were doing their part, sitting on low interest rates while the US was aggressively raising theirs. He does not have the power to change this, so I think this is a short-term blip. I believe that we are going to continue to base in this area, so I would fully anticipate a bit of a pullback, before buyers perhaps come back into the marketplace to push even higher.

When you look at the longer-term charts, the Australian dollar is heavily supported just below, so quite frankly it’s not a huge surprise to see that we rallied, and I think the market was essentially just waiting for an excuse. Early during American trading on Friday got its excuse and jumped on that opportunity. I believe in the short-term, we remain range bound, but I do expect to see the Australian dollar rally eventually. However, keep in mind that the Aussie dollar is highly sensitive to the Chinese markets, which have been absolutely crushed lately. Overall, I do think that there are plenty of buyers below and eventually they will get their way.

AUD/USD Video 23.07.18

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.