AUDUSD Forecast – Australian Dollar Pulls Back

AUDUSD Forecast Video for 22.02.23

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has pulled back a bit during the trading session on Tuesday as we continue to see a lot all volatility in this pair. We are hanging around the 200-Day EMA, an indicator that a lot of people pay attention to. Because of this, I think it makes quite a bit of sense that we would see choppy behavior. The 0.69 level being in the same general vicinity probably as to the volatility as well, so it is worth pointing that out also.

All things being equal, we have to ask whether or not this is an area where the Australian dollar is going to see a little bit of support, or if we are going to continue to see negativity. A lot of this will come down to the interest-rate markets, and whether or not traders are starting to focus on tight monetary policy in the United States, or if they are going to focus more on the China reopening situation. After all, the Australian dollar is highly levered to the Chinese economy and of course the demand for Aussie commodities.

The global growth situation is tenuous at best, but a lot of traders are starting to pin their hopes on China pulling everybody through. If that’s the case, then Australia will be one of the biggest beneficiaries. However, if this market were to break down below the hammer from the Friday session, I suspect at that point we will see further selling pressure on the Aussie dollar, sending it toward the 0.67 level. Regardless, I would anticipate a lot of choppy behavior, but it is worth noting that we have recently seen a significant selloff from the 0.7150 level that has yet to be truly challenged.

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