AUD/USD Weekly Price Forecast – Australian Dollar Loses All Gains

Australian Dollar vs US Dollar Weekly Technical Analysis

The Australian dollar has initially tried to rally during the week they gave back gains as it looks like we will continue to struggle going forward. The Australian dollar of course is a commodity currency as well as a “risk on” currency, so that has a lot to do with what we are seeing. Quite frankly, it’s difficult to imagine a scenario where people are going to jump in and start going into riskier assets. The US dollar is like a wrecking ball for almost everything, and quite frankly I don’t think were done. The Federal Reserve has to tighten monetary policy to fight inflation, and the rest of the world is just going to have to deal with that.

The Reserve Bank of Australia recently cut interest rates by 25 basis points instead of the expected 50, which is the first sign of the RBA blinking. At this point, the question is whether or not the Australian dollar will trade down to $0.60? I suspect that we probably will get there sooner or later, because it seems like every time this market rallies, there are plenty of sellers to jump on board.

In fact, it’s not until you break above the $0.67 level that you can take a rally seriously. Between here and there, any rally is more likely than not going to be a nice selling opportunity at the first signs of exhaustion. I suspect that until something changes quite drastically with the Federal Reserve monetary policy, this is going to be how things play out.

AUD/USD Price Forecast Video for 24.10.22

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