AUD/USD Weekly Price Forecast – Australian Dollar Accelerates to The Upside

Australian Dollar vs US Dollar Weekly Technical Analysis

The Aussie dollar has rallied rather significantly during the trading week as we are now well above the 0.6850 level and then the 0.69 level. So, at this point, I think you’ve got a situation where the market is going to continue to be very noisy, but I also recognize that we probably are going to continue to see a lot of questions asked about the Federal Reserve and what their monetary policy will actually be. After all, we did just see a significant 50 basis point interest rate cut and that has a certain amount of shock value to it.

Always remember that the Australian dollar is highly sensitive to commodities and Asian growth, so all things being equal, this is a market that I think continues to pay attention to multiple factors, but with the Federal Reserve behaving the way they are, that might overshadow pretty much everything.

So, we’ll have to wait and see how this all plays out. I think in this environment, people are going to be selling the US dollar first and asking questions later. Short-term pullback should continue to see plenty of support near the 0.6850 level. And I think that’s how we have to play it to the upside the 0.70 level and then the 0.7150 level are a couple of targets that I think everybody will be aiming for. This is more of a risk on move and as long as the Federal Reserve looks likely to continue to be forced to cut rates, I think this is a currency that probably benefits from this behavior.

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