AUD/USD Price Forecast – Australian Dollar Rallies Again
On a day that the US dollar started to gain some strength against other major currencies, the Australian dollar continue to go slightly higher. That is a strong sign and tells you that the Australian dollar is going to be a force to be reckoned with. Ultimately, I like buying short-term dips in this pair and adding to a core position which I have been in for some time. I believe that the area between the 0.71 and 0.70 level offers plenty of support in that we should go looking towards the 0.75 handle above. After that, then the market will go looking towards the 0.80 level next.
AUD/USD Video 20.08.20
With the Federal Reserve pumping liquidity into the marketplace it makes quite a bit of sense that the US dollar struggles, but even gets exacerbated here a bit more due to the fact that the Australian dollar is highly levered to the gold market. As gold has essentially been on fire as of late, it makes sense that the Aussie continues to be extraordinarily resilient. With that being the case, buying dips is the only play that you have out there, and this longer-term trend should continue to go much higher.
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In fact, I would not be surprised at all if this has become more of a multi-year trend, due to the fact that we are now entering the regime are central banks around the world are loosening monetary policy as quickly as they can. With that being the case, it makes an even stronger case for gold, which makes a relatively strong case for the Australian dollar, despite anything going on in that country.
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