AUD/USD Price Forecast – Australian Dollar Gives Up Gains Yet Again

The Australian dollar has shown itself to be vulnerable for risk appetite yet again, as the markets have initially tried to rally but failed for the sixth day in a row, as it looks increasingly obvious that it is only a matter of time before we break down. If we clear the 0.72 level, I then become aggressively short of this pair as I will build up a position quickly. I have been short for a while, and I will admit that the last week and ½ or so has been somewhat frustrating, but at the end of the day this is obviously a market that has a lot to worry about just above.

AUD/USD Video 29.09.21

In fact, it is not until we take out the 50 day EMA to the upside that I would consider buying, and even then, I would be a bit cautious. The market is more than likely going to continue to see more of a “fade the rallies” type of attitude out there, and therefore I think it is probably only a matter of time before I am short yet again. There are a lot of concerns coming out of China, which of course is highly influential on what happens with the Australian dollar as it is the number one destination of Australian commodities. If China starts to slow down and have issues, it makes quite a bit of sense that people will be running towards the US dollar and the US bond market as safety becomes paramount. If we do break down, I suspect that we are going to go looking towards the 0.71 handle, maybe even the 0.70 level.

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