Australian Dollar Hovering at Big Figure

The Australian dollar has gone back and forth during the trading session on Thursday as there are a lot of geopolitical issues coming out of the situation between Russia and Ukraine, but at the same time Australian employment numbers were much stronger than anticipated earlier in the day. Because of this, traders are starting to bet on the idea that the Reserve Bank of Australia may have to tighten quicker than they had previously suggested. Nonetheless, we have a lot of technical analysis going on in this area, so let us take a look at it.

AUD/USD Video 18.02.22

The 50 day EMA sits just below current pricing as I record this, so that could offer a little bit of support. We are currently sitting at the 0.72 level, an area that has caused quite a bit of noise in the past. Furthermore, we have a shooting star that we have not broken above, (at least at the time of this writing) from last week that will more likely than not offer some resistance. In other words, although it has been very bullish over the last couple of days, the Australian dollar still has a lot of thing things going against it on the charts.

The Federal Reserve tightening monetary policy has strengthened the US dollar in general, so that is probably something worth paying attention to as well, but at the end of the day it is very unlikely that will be anywhere near as tight as the market is trying to price in. That being said, I think we should continue to see a lot of choppy sideways action over the next couple of sessions.

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