AUD/USD Price Forecast – Aussie closes out the week on solid footing

The Australian dollar when sideways for most of Friday with an upward twist. It looks as if we are attacking the 0.73 level, and if we can break above that level, that would be a very positive sign indeed. That could be the beginning of a rally towards the 0.75 level, but needless to say that’s not easiest trade in the world to take. Keep in mind that the Australian dollar is highly levered to the Chinese economy, so the Sino-American relations must be followed, and paid attention to quite stringently. If those break down, that hurts the Australian dollar as we have seen over the last couple of weeks. Further concerns about Chinese credit markets could weigh upon the Australian dollar, but at this point I think if anything else we could probably expect a bit of a bounce.

When I look around the Forex world, it seems as if the US dollar is ready to pull back a bit, and that is probably necessary as it had gotten to be far too overbought. I think that the market will probably continue to be very noisy, but it certainly looks much better for the Australian dollar on Friday than it did say on Wednesday. Expect volatility, but I think if we can break above that little cluster just above the 0.73 level, we could see a bit of a “melt up” in the markets, allowing for the Aussie to recapture some of its major losses that we had seen.

AUD/USD Video 20.08.18