AUD/USD Price Forecast – Australian dollar surges higher

The Australian dollar had a very strong session to kick off Tuesday but did run into a bit of noise above. The markets are weighing whether or not the Chinese tariffs will amount to much, and whether the trade war continues to escalate.
Christopher Lewis
AUD/USD daily chart, September 19, 2018

The AUD/USD pair has been noisy to say the least but obviously continues to follow the US/China trade sanction situation very closely. I believe that ultimately this market will find some type of stability, but right now there are simply far too many moving pieces for participants to be comfortable hanging onto this currency pair for any significant amount of time. I think that continues to be the case, as there are simply far too many headlines out there to move things around. I think that the trade war has a lot of people spooked, and then of course there is the overall strength of the US dollar when it comes to emerging markets.

I believe that the market will continue to be very difficult to navigate so therefore I think using small positions will probably be a paramount over the next several weeks. There are so many moving pieces right now that it’s almost impossible to feel comfortable in any particular trade if it’s a full-sized position. However, if you find yourself being proven correct on a break out to the upside or a break down below the 0.7150 level, then perhaps you can add to your position. The Chinese are now filing a complaint with the WTO against the United States, and the trade war doesn’t look like it’s going anywhere. It is because of this that I suspect the sellers will be back fairly soon as this is getting worse, not better between the two powerhouse economies.

AUD/USD Video 19.09.18

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.