AUD/USD Price Forecast – Australian dollar stabilizing

The Australian dollar went back and forth during trading on Thursday, as we hover just below the 50 day EMA. This market has been rather negative over the last couple of days, but in the end we need to pay attention to the fact that the Federal Reserve is looking to cut interest rates. If that’s going to be the case it should continue to work against the value of the greenback, as we still see plenty of central bank easing out there. The question now is whether or not the Australians will follow, the probably will but at this point they still haven’t done anything.

AUD/USD Video 26.07.19

The Australian dollar is of course very sensitive to the US/China trade mess, and we should continue to see a lot of noise in that area. There are some somewhat consolatory tones coming out of Beijing, so that could help as the Chinese have given five companies the ability to buy US soybeans without any type of retaliatory tariffs. With that being the case, it could give us an idea of the possibility of something turning around in this situation. That doesn’t mean that the tensions are over, but reality dictates that sooner or later these countries need to come together in this scenario.

To the downside, we are still not made a fresh, new low, so that of course is something that the buyers could hang their hats on. We had pulled back from a major downtrend line which of course is something to pay attention to but we have been trying to form a bit of a bottoming pattern, and going forward I think that it’s very likely that we will make another attempt to get above there.