AUD/USD Price Forecast – Australian Dollar Looking For Buyers

The Australian dollar has initially dipped below the short-term support during the trading session on Thursday, as Donald Trump signed the Hong Kong bill. That being said though, we have seen a little bit of recovery since then.
Christopher Lewis
AUD/USD daily chart, November 29, 2019

The Australian dollar has pulled back a bit during the trading session on Thursday but has also seen a little bit of a bounce since then as market participants continue to see a lot of value underneath the 0.6775 handle. There is support below at the 0.67 handle as well, which has served as a bit of a “double bottom” in the market. At this point in time I think it’s only a matter of time before the buyers stepped back in, but even if they don’t at this point, the 0.67 level should be very difficult to break down below. If we were to do so, that would be extraordinarily negative for the Australian dollar. Having said that, market participants will probably continue to be whipsawed by the ridiculous headlines.

AUD/USD Video 29.11.19

The Australian dollar is essentially on tradable at this point. This is because it has such a high correlation to the US/China trade talks, which of course haven’t really gone anywhere as of late. The pair tends to be traded by algorithms these days, and most of the people I speak to aren’t even bothered. Granted, there will come a time when the Americans and the Chinese come together on something, and when they do this will be one of the first places money flows to. It is because of this that we need to keep an eye on this pair. But until the Americans and the Chinese get it together, this is a pair that’s going to continue to chop around and do very little from a bigger picture.

Please let us know what you think in the comments below

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.