AUDUSD Forecast – Australian Dollar Continues to Edge Higher

AUDUSD Forecast Video for 26.01.23

Australian Dollar vs US Dollar Technical Analysis

Australia had inflationary numbers come out early in the morning on Wednesday a bit higher than anticipated, and now people are betting that the Reserve Bank of Australia will have to raise interest rates a bit more aggressively than originally thought. Having said that, this is a market that will have to face gravity sooner or later, and of course if there is some type of major “risk off” move, that obviously works against the Australian dollar as well.

Furthermore, you have to keep in mind that there is the question of the Chinese reopening, and whether or not it will benefit the Australian economy. Under normal circumstances, one would think that’s an easy correlation to draw. However, the big problem is that the rest of the world is so sluggish right now that it may not be enough to pull the Australian dollar higher.

If we were to turn around and break down below the bottom of the hammer that formed during the Tuesday session, I think we open up the door to return to the 0.69 level. Alternatively, if we break above the highs of the day for Wednesday, then we more likely than not go looking to get to the 0.72 level. In this environment, I can see where you could have a lot of noisy behavior, so the one thing that I would suggest is that you need to start out small with any positions that you kick off and that’s enough add as they prove themselves to you. This has been a relatively tough trading environment, because quite frankly, it’s been very noisy as we try to figure out what to do with ourselves.

For a look at all of today’s economic events, check out our economic calendar.