Australian dollar shows plenty of volatility during the trading session on Thursday
The Australian dollar as you can see has been very noisy during the trading session on Thursday, trying to reach towards the 0.76 handle, but there are a lot of concerns about tariffs being applied by the Americans against several other economies around the world, and that of course has the markets and a bit of disarray. Ultimately, I think that the market will probably go lower based upon that, and of course the massive resistance above at the 0.76 handle, and then of course by breaking below the 0.77 level previously we had shown a proclivity to fall. The previous uptrend line has been important support that we break down, and it now should be resistance which I see forming somewhere just above the 0.76 level as well.
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Gold markets of course have the usual influence on the Australian dollar, so pay attention to those. I believe that the US dollar will continue to strengthen longer-term, and what we are seeing is a return to that attitude. If interest rates continue to rise in America and of course we get some type of geopolitical concern, it’s likely that the US dollar will continue to benefit from that situation. Beyond that, the Australian dollar has a lot of sensitivity to what goes on in Asia, and Asia is based around global trade. I believe that we have seen a nice bounce from a large, round, psychologically significant figure in the form of the 0.75 level, and that’s it.