AUD/USD Price Forecast – Australian Dollar Pulls BackThe Aussie dollar has pulled back a bit against the US dollar again on Thursday, as we go looking towards support underneath.
The Australian dollar has pulled back quite a bit during the trading session on Thursday, as we are looking for support below. I think there are plenty of reasons to think that the 0.72 level will be supportive, and most certainly the 0.71 level will be as well. Somewhere in that range, I fully believe that this market will turn around and find a reason to continue to rally. After all, the Federal Reserve is doing everything it can to flood the market with liquidity, and of course the interest-rate environment in the United States is extraordinarily low. With that, people tend to bet on other currencies such as the Aussie.
AUD/USD Video 04.09.20
Further consideration is the fact that the Australian dollar is quite often attached to the Chinese economy, so if we can get continued outperformance there, it is very likely that the Aussie will continue to benefit from that. After all, Australia is a major supporter of the Chinese economy for raw materials, so it is a bit of a proxy way to play the Chinese Yuan, as it is not convertible in the open market. Ultimately, I think that we will get a buying opportunity on this dip, but you need to keep in mind that the jobs number may cause it to be a little less drastic than you might see under normal circumstances. With this, I do like the idea of buying dips, but I will wait until we get some type of daily candlestick that tells me it is time to go long.
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