Australian Dollar Continues to See Noisy Behavior

The Australian dollar has gone back and forth during the course of the trading session on Tuesday as we continue to hang around just above the 0.71 handle. The Aussie dollar of course is a “risk on” type of currency. All things being equal, this is a market that will be moving right along with geopolitical risks at the moment, as everybody is focusing on the Russia/Ukraine situation. Over the last 12 hours, there have been reports that the Russians are pulling back some of their troops, so that of course has towards risk.

AUD/USD Video 16.02.22

Looking at this chart, if we can break down below the 0.71 handle, then it is likely that we could go looking towards the 0.70 level underneath. The 0.70 level underneath is a major round figure that a lot of people will be paying attention to, as it is an area that is important multiple times. The breaking of the most recent low near that area could send the Australian dollar down to the 0.68 handle underneath.

To the upside, we have the 50 day EMA drifting lower, so we can break above there it is likely that we could go looking towards the 0.7250 level. Breaking above that level of course would be very bullish but I do not think that would be the more difficult move. All things being equal, this is a market that is going to continue to be noisy and sideways in the short term, especially as we try to figure out what the next move is going to be when it comes to the risk appetite around the world.

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