Australian Dollar Pulls Back Slightly

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has pulled back just a bit during the trading session on Thursday as we continue to see selling pressure just above. The 0.75 level has been important more than once, and therefore it is obvious that the market pulling back from here makes quite a bit of sense. The 0.75 level has been important multiple times in the past, and therefore this should not be a huge surprise. When you look at the longer-term chart, you can even make an argument for a consolidation area between the 0.70 level on the bottom, and the 0.75 level on the top.

Keep in mind that the Australian dollar is highly correlated to commodities, so that is part of what has been helping it over the last several times. At this point, the market also is starting to come to grips with the idea that perhaps commodities are trying to peak, mainly due to demand destruction coming down the road. Whether or not that is the case remains to be seen, but it is certainly something that people are paying close attention to. Furthermore, the US dollar is considered to be a currency that people run to when they need safety, and the interest rate differential continues to shift toward the United States as we have seen bonds in America sell-off drastically.

Above the 0.75 handle, there is a significant amount of noise between there and the 0.76 level, so be cautious of any rally because it has so much work to do to break out cleanly. If it were to do that, then you could see the Aussie go looking to the 0.78 level.

AUD/USD Price Forecast Video 22.04.22

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