AUD/USD Price Forecast – Australian Dollar Rallies But Gives Up Some Of The Gains

The Australian dollar has initially tried to rally during the trading session on Monday but has ran into a bit of trouble near the 0.6775 handle. This was an area where we had seen some selling pressure previously, so it’s not a huge surprise to see a little bit of a pullback. There is more of a “risk on” attitude around the world right now though, so that should help the Australian dollar going forward. The coronavirus still hijacks most of the headlines, so that of course will continue to be something to pay attention to. Quite frankly though, the Australian dollar has just bounce from one of the most important levels longer-term on the chart.

AUD/USD Video 06.02.20

The 0.67 level is the beginning of the range from the financial crisis 12 years ago, so therefore it’s not a huge surprise to see that we perhaps had to rally from there. If we can get above the 0.68 level that would be something rather positive for the Aussie dollar as well, perhaps sending it towards the 0.70 level. Expect a lot of noise, and therefore a lot of choppiness. However, it does appear that longer-term traders are trying to pick up a bit of value here when it comes to the Aussie due to the overblown concerns about the virus shutting down China forever. Ultimately, it looks as if value hunters continue to return, and with the RBA holding steady recently, that helps the idea of the Aussie stabilizing as well.

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