AUD/USD Price Forecast – Australian Dollar Recovers

The Australian dollar has rallied a bit during the course of the trading session on Wednesday to show signs of support again. The 0.72 level above is a major barrier that the market is difficult to overcome. If we can break above that level, then it is likely the Aussie will continue to rally towards the 50 day EMA. The market continues to be a major source of volatility due to the fact that there are a lot of concerns with the potential lockdown of the Australian economy yet again, as it seemingly cannot get off of its back.

AUD/USD Video 16.12.21

Furthermore, we need to pay close attention to commodities and China. Commodities are starting to slope a little bit, so I do think that it is probably only a matter of time before we see selling pressure again. To the downside, the 0.71 level would be supportive, and if we break down below there it is likely that the Aussie goes looking towards the 0.70 level. That is a larger level on the longer-term charts, and therefore it will attract a lot of attention. We have bounced quite significantly from there, but whether or not we have turned the market around is a completely different story.

While I do not necessarily see gloom and doom, it is a bit difficult to get excited about the Australian dollar in the short term, so I think we are more likely than not to see sellers on a certain amount of bullish pressure. Signs of exhaustion will continue to be sold into unless of course the Federal Reserve decides to slow down his tapering process.

For a look at all of today’s economic events, check out our economic calendar.