AUD/USD Price Forecast – Australian Dollar Plows Into Resistance

The Australian dollar has rallied again during the trading session on Monday but seems to be struggling with the 0.73 level. This is an area that I think will continue to be important, but the 50 day EMA coming down to that area would probably cause a bit of noise anyway. While this has been a rather bullish candlestick for the session, the market still has to get past all of that noise. Furthermore, the Australian dollar is highly levered to the Chinese economy, which in and of itself could be a major issue.

AUD/USD Video 05.10.21

With the Australian authorities hell-bent on locking down their economy overall, that of course is not can help the situation, and you should also pay close attention to some of the major commodities coming out of Australia. Copper, although in a bullish trend, has been choppy as of late, and it suggests that perhaps copper is trying to tell us that things are slowing down. Iron prices have been strong most of the year but have also ran into a similar issue.

Supply chain disruptions will also cause a major problem with the Chinese economy, which of course is quite often expressed through the Aussie dollar, and as we continue to see problems with Evergrande, that could also come into the picture as well. Quite frankly, the Chinese economy seems to be struggling with its massive debt burdens, which are for the most part priced in US dollars, something that should not be overlooked as well. With this, I am looking for signs of exhaustion that I can fade this market again. As things stand right now, I do not have any real interest in trying to get long.

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