AUDUSD Forecast – Australian Dollar Gives Up Early Push Higher

AUDUSD Forecast Video for 03.02.23

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has initially tried to rally during the trading session on Thursday, but seemingly is running out of momentum. At this point, it will be interesting to see how this plays out because of the turnaround it would be yet another Federal Reserve meeting that caused a reaction, followed up by a complete turnaround. This has been the pattern for a while, so it certainly could be possible. I don’t like the idea of getting too cute here, but as we head into Non Farm Payroll Friday, one has to wonder whether or not we can keep this momentum up?

A pullback from here sends this market back into consolidation, not a whole lot more or less than that. I think given enough time, we will see an attempt to break out of this range, and when we do it should be rather important. After all, we have a lot of noise out there, and a lot of confusion when it comes to the potential outlook for the economy. That’s going to be the case, then it’s likely that we see this market react accordingly as the Aussie is so highly sensitive to risk appetite.

With that in mind, I believe that we are going to see more choppiness than anything else, but one still has to believe that there are a lot of buyers on dips. In that environment, I don’t wish to short the market, at least not yet. However, if we were to take out the bottom of the candlestick from Tuesday, that might change my attitude going forward.

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