AUDUSD Forecast – Australian Dollar Continues to Test Support

AUDUSD Forecast Video for 23.02.23

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has pulled back just a bit during the trading session on Wednesday, as it looks like we are going to continue to test the 0.68 level. This is an area that has been supported previously, so it does suggest that we have a bit of a fight on our hands. The Australian dollar had a little bit of a sympathy move with the New Zealand dollar overnight, as the Royal Bank of New Zealand raised its interest rate level by 50 basis points. However, both currencies have since seen a little bit of a sell off, so as the market tends to do, these 2 currencies moved in the same general direction overall. The market certainly looks as if it is trying to break down a bit, but a lot of this will also come down to the US dollar itself.

Keep in mind that the Australian dollar is highly sensitive to commodity markets, and of course global risk appetite in general. The Australian dollar is also very sensitive to the Chinese economy, which of course is in the midst of reopening. However, it’s probably worth noting that in the global economy itself is rather weak, and therefore the question is whether or not the Chinese economy will benefit in the way that a lot of people had priced in. Ultimately, it looks as if we are going to try to break down but there are other support levels underneath worth watching, especially near the 0.67 level.

If we do get a bit of a “risk on move”, perhaps breaking above the 50-Day EMA above, it suggests that the Aussie dollar make you look into the 0.70 level, which of course is a large, round, psychologically significant figure and an area that has seen some selling pressure in the past. Interest rates in America have been rising again, so that of course also helps the idea of the US dollar strengthening, not only due to interest-rate differential, but also the fact that it should slow down the global economy.

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