AUD/USD Forecast – Aussie Continues to See Buyers

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar initially pulled back just a bit during the trading session on Friday but has turned around to show signs of life again as the core PCE numbers in the United States came out at 0.1 instead of the expected 0.2. Well, not a major difference. The reality is that it just reinforces the idea that the Federal Reserve will probably have to loosen monetary policy.

And at this point, that’s the only thing that seems to matter to traders around the world, almost regardless of the market they’re trading in. This is true regardless of whether or not it’s a concern currency market, or if it is a commodity market. The Australian dollar has aspects of both, that will make that particularly interesting when trading this market.

So, it does make a certain amount of sense that the Australian dollar would see a bit of inflow. I have no interest in shorting this market, and if we do get a pullback from here, I would anticipate that the initial support level should be the 0.6850 level. To the upside, the 0.70 level will attract a certain amount of attention, and I think you have to be very cautious with that level because of the psychology behind it. But really at this point, it’s obvious that shorting this pair is something that you can’t do as the momentum seems to be picking up, yet again, after a couple of days’ worth of consolidation in the Australian dollar.

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