AUD/USD Price Forecast: Aussie Dollar Continues to Find Buyers on Dips

The Australian dollar has pulled back a bit during the trading session again on Tuesday, as we are simply treading water through the holidays. This should not be a huge surprise, because quite frankly there is not much going on. However, we are sitting just above a major support level, so that something that is worth paying attention to. We have seen quite a bit of noise between the 0.74 level and the 0.75 level, meaning that it should continue to offer quite a bit of importance and support. Ultimately, the 50 day EMA is starting to reach towards the 0.74 level as well, so that of course is a very strong sign of support as well. Ultimately, I think that this market probably continues to try to go higher, but this may be next year.

AUD/USD Video 22.12.20

All things being equal, I think you have to be a “buy on the dips” type of trader going forward, as the stimulus situation in the United States looks to be one that will not be going away anytime soon. Yes, they just passed a stimulus bill, but there is already talk of another one. If that is going to be the case, then the Aussie should be a big winner as it is highly levered to a lot of commodities. Furthermore, China has been levying tariffs against the Australians, but there are reports of massive shortages of coal and other Australian imports that are starting to take a toll on the economy in China. In other words, the Chinese are probably going to blink before it is all said and done. That should boost more exports coming out of Oz.

For a look at all of today’s economic events, check out our economic calendar.