AUD/USD Price Forecast – Australian dollar tries to rally but fails

The Australian dollar rallied a bit during the trading session on Wednesday, showing signs of weakness after initially reaching towards the downtrend line that I have marked on this chart.
Christopher Lewis
AUD/USD daily chart, March 22, 2019

The Australian dollar initially rallied during the trading session on Thursday, showing signs of bullish pressure. However, we still have a lot of drama when it comes to the US/China situation, and therefore it’s likely that this pair will struggle as the Australian dollar will continue to be held hostage to what’s going on over there, so even if we do get a move to the upside, it’s going to continue to be somewhat short-lived and my best estimation. After all, this is a market that has shown a proclivity to follow right along with the latest headlines, and of course what’s going on in the mainland as well.

AUD/USD Video 22.03.19

The Chinese are starting to add stimulus to their economy, so if we get a bit of a boost over there it’s likely that the Australian dollar will rally due to the fact that the Australian economy is highly sensitive to exports for Chinese manufacturing. Remember, the Australian economy has a lot of mining and hard commodities involved in it, so it makes sense that if the Chinese are manufacturing more, or perhaps even picking up construction, Australian companies will benefit from that. Ultimately, this is a barometer for Sino-American relations, and of course trade flow.

The Federal Reserve has backed away from being hawkish, and that of course will have an influence on the greenback itself. Because of this, all we need is a little bit of good news coming from either Australia or China to reach to the upside. The 0.70 level underneath is the beginning of massive support, extending down to the 0.68 level. That’s an area that has offered massive support on longer-term charts. Because of this, I continue to buy dips.

Please let us know what you think in the comments below

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

Top Promotions

Top Brokers

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.