AUD/USD Price Forecast – Australian Dollar Looking at Buyers Just Below
The Australian dollar has fallen a bit during the trading session on Tuesday, showing signs of negativity initially, but is sitting on the 50 day EMA as I record this. Underneath there, the 0.71 level continues offer significant support extending all the way down to the 0.70 level. With that being the case, I like the idea of buying the Australian dollar eventually, or at the very least I do not like the idea in selling it. After all, the US dollar strengthening does not necessarily mean that you buy against everything. We are starting to see signs of the US dollar strengthening, but the Australian dollar is a little bit of an outlier when it comes to foreign-currency, due to the fact that it is so highly levered to China. With the Chinese economic numbers improving, that certainly helps the Australian dollar.
AUD/USD Video 23.09.20
Furthermore, there is concern about inflation due to central bank printing, and that has people looking for hard assets such as precious metals. That helps the idea of the Aussie strengthening due to the fact that the Australian economy is so highly levered to gold, copper, and hard assets in general. In other words, if we can get some type of bounce in this area I would be willing to buy this pair, but I am not even looking at selling it until we break down below the 200 day EMA, something that we are far away from doing right now. If the US dollar falls, I am a buyer of the Aussie. If the US dollar strengthens, I just stand to the side when it comes to this market.
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This article was originally posted on FX Empire
