AUD/USD Price Forecast – Australian Dollar Trying to Reach Higher

The Australian dollar has rallied a bit during the course of the trading session on Friday, as the US dollar is on the back foot. However, we still have the 200 day EMA above, so I do not necessarily think that it is so-called “clear sailing” to the upside right now. With this, I believe that what we are looking at is more chop in the same general direction. If we can break above the 0.75 level, then I believe that the Australian dollar becomes more of a “buy-and-hold” type of trade. Until then, I think you have to be very cautious about the potential of choppy behavior.

AUD/USD Video 13.09.21

Underneath, if we were to break the 0.73 handle, then it is likely that the market would crater. At that point, I would anticipate that the Aussie would go down towards the 0.71 handle, with the US dollar strengthening across-the-board. In other words, it would be a very bullish sign for the greenback in general.

Keep in mind that Australia is highly levered to China, and all things Chinese. With this, you have to keep an eye on the fact that quite a few of the economic numbers out of China have not been that impressive, and that of course could weigh upon exports coming out of Australia. The GDP number out of Oz was stronger than anticipated though, so it is worth noting that the market has found yet another reason to go higher based upon that. The question now is whether or not we can break above the 0.75.

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