AUD/USD Price Forecast – The Australian Dollar Pulled Back to Kick Off the Week

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has fallen on Monday, to kick off the week on its back foot. Ultimately, the 0.6850 level is an area that I think could offer a significant amount of support, as we have seen action there previously. I think it is going to end up being a 50 PIP support level that extends down to the 0.68 handle, so once we get below that level, I think we have a high likelihood of the Aussie continuing to go lower.

The Australian dollar is highly levered to commodity markets, so pay attention to those as well. There is concern about a global slowdown, as the economy seems to be crumbling. If that’s going to be the case, it’s likely that we would see the Aussie suffer as a result. Furthermore, you need to pay close attention to China, and how is behaving. Keep in mind that the Australian dollar tends to be very sensitive to the Chinese mainland, which is currently in the process of trying to stimulate the economy, so you will have to keep an eye on how things pan out there.

The Federal Reserve continues the tight monetary policy, so that does favor the US dollar in general, especially as it looks like the Federal Reserve is insistent on becoming aggressive. As long as that’s going to be the case, the US dollar will continue to be relatively strong against multiple currencies, not just in the AUD/USD pair. Furthermore, if we continue to see a lot of “risk off behavior”, it’s possible that the US dollar will gain as well.

AUD/USD Price Forecast Video 28.06.22

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