- During my daily analysis of the AUD/USD pair, the first thing I see is that we continue to look at the 0.67 level as crucial, as it has held up for support of action over the last several days.
- The market touched that area in the early hours of Tuesday, only to turn around and show signs of life again.
- The market breaking above the 0.6775 level could be a sign that we are finally going to recover, but it also has a lot of work to do in order to accomplish this.
On the other hand, if we break down below the 0.67 level, that almost certainly will open up the possibility of dropping to the 200 Day EMA, an indicator that a lot of people use to determine the trend. Keep in mind that this pair has been digesting gains of the greenback over the last 4 or 5 trading sessions, so therefore we are coiling up like a spring in order to make a bigger move from what I can see. That being said, we get the latest employment figures coming out of Australia early during the Thursday session, while later in the day we get the Weekly Unemployment Claims and Retail Sales announcements coming out of the United States. Because of this, it would not surprise me at all to see this market sit somewhat still between now and then.
Top Forex Brokers
Australian Dollar and Risk Appetite
As per usual, we need to keep an eye on risk appetite, because the Australian dollar is so highly levered to commodity markets and the idea of what’s going on globally. Global trade it tends to be driven by risk appetite and of course commodity markets, which Australia is heavily laden with. Because of this, you will need to pay attention to other markets to get an idea as to how the Aussie dollar might move, or perhaps more importantly, how the US dollar might move.
We are currently between the 200 Day EMA and the 50 Day EMA indicators, and this typically means that there is a little bit of choppiness ahead, followed by a bigger move. I suspect that Thursday might be pivotal for this currency pair, but if we get some type of global move in the US dollar, that may preclude that move.
Ready to trade our AUD/USD Forex analysis? Here's a list of the best brokers FX trading Australia to choose from.