AUDUSD Weekly Forecast – Australian Dollar Tests Support

AUD/USD Forecast Video for 06.03.23

Australian Dollar vs US Dollar Weekly Technical Analysis

The Australian dollar has fallen a bit during the trading week to test 0.67 level, an area that has been important multiple times. However, we have seen quite a bit of buying in that region, so it does make a lot of sense that we would have a little bit of support show up. At this point, I think a lot of this will come down to risk appetite but it’s worth noting that recently we had pulled back rather abruptly to the 50% Fibonacci level of the major downtrend. We have since fallen, so now I think that rallies probably get sold into.

Keep in mind that the Australian dollar is highly levered to commodity markets and the global economy in general, so it is worth noting that we have a lot of things to pay attention to that are outside the realm of Australia itself. As commodity markets rise and fall, typically the Australian dollar will do the same. You also need to keep an eye on China, as it may be an outsized influence on what happens here. Remember, China is Australia’s biggest customer, so it all ties in together.

If we were to break down below the 0.6650 level, I think you could have a move back down to the 0.63 level, but right now I think we probably are due for a short-term bounce, that I am more than willing to settle into at the first signs of exhaustion on the daily chart. As far as buying is concerned, we need to recapture the 0.70 level for me to feel comfortable doing so at a minimum.

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