Australian Dollar Continues to Drift Lower

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has initially fallen during the trading session on Monday, reaching towards the 0.74 level. That is an area that is going to cause quite a bit of headline attention, as it was a major breakout point previously. As we have bounced a bit during the day, it does suggest that perhaps we may not be quite ready to break down drastically yet, but it is worth noting the massive reversal that we had seen last week.

If you remember, the Reserve Bank of Australia had dropped the word “patience” from its statement and that had people thinking that perhaps they were much closer to raising interest rates than originally thought. However, the next day the FOMC meeting minutes were released, and they suggested that the American central bank with much more hawkish than thought as well. This had the markets all over the place, so now it is going to be interesting to see how this plays out.

I do believe that the only thing you can probably count on at this point is going to be a lot of volatility and noisy trading, but I quite frankly do not think that we needed the central banks to get involved, because there are a lot of risks around the world when it comes to commodities, interest rates, and of course politics. Furthermore, there is the possibility of a recession, and that has a lot of people concerned. Ultimately, I think that we are trying to find a little bit of a bounce, but I think at this point 0.75 level would be a bit of a barrier.

AUD/USD Price Forecast Video 12.04.22

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