- The Australian dollar has crumbled during the trading session on Friday, as we have seen the US dollar take off to the upside.
- After all the jobs report in the United States was much stronger than anticipated.
- So therefore, it is driving yields higher in America and therefore driving the U S dollar higher itself.
The Australian dollar is attached to commodities and the idea of growth in Australia. As far as interest rates are concerned in Australia, they are still relatively close to the Americans, so I don’t think it’s going to be as much of an interest rate differential situation in this AUD/USD currency pair going forward.
Top Forex Brokers
But more importantly, we have recently seen the Australian dollar be stubbornly positive. The question now is whether or not this nasty candlestick gets any follow through. At this point, the 0.6650 level is a area that a lot of people pay close attention to as it is a bit of a magnet for price. On the other hand, if we continue to drop from here, perhaps breaking below the 0.6550 level then the Aussie dollar could drop down to the 0.6450 level, an area that previously had been support. What it is worth paying close attention to is that the market just seemingly is not bouncing. That's a typically negative sign, so we'll have to see how this plays out.
Even If We Were to Fall…
Regardless, even if we do fall from here, it is a market that continues to be somewhat sideways in general and I do think that you have to keep that in mind. So maybe we are just going to go back to the median between the support and resistance levels mentioned either way, expect it. Noisy choppy sideways, nonsensical trading, which will almost certainly focus on the interest rates in America more than anything else at this point. Furthermore, you can also keep an eye on geopolitics, because if there is a sudden rush to safety, they can also work against the Aussie.
Ready to trade our daily Forex analysis? Check out the best forex trading platform for beginners Australia worth using.