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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

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