AUD/USD Price Forecast – Australian dollar slightly positive for Monday
The Australian dollar has been a bit choppy during the day on Monday, hovering around the 0.74 level after initially pulling back. The market will continue to be very noisy, but I think there is a significant amount of demand down at the 0.7375 handle. That’s an area that I think will be very supportive, so I think that pullbacks to that area will probably be a nice buying opportunity. Overall, if we can break above the 0.7425 handle, the market is probably free to go looking towards the 0.7450 level. I would anticipate a lot of noise, mainly because we have a lot of concern when it comes to trade between the United States and China, and of course the Australian dollar is a bit of a proxy for China.
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I anticipate that short-term back and forth range bound trading is probably the best way to go, as there are so many announcements coming out this week with central banks that it’s probably best to aim for small gains than anything else. I do believe that there is a lot of demand underneath though, so I think that longer-term the Australian dollar will probably continue to rally, and I think that the longer-term results will be overall positive for the Australian dollar, but I also recognize that if we were to break down to a fresh, new low, down below the 0.7325 handle, and the 0.73 level, the market could unwind rather drastically – probably on bad news.