Weekly technical analysis of the Australian dollar against the US dollar
The Australian dollar has been all over the place over the week so at this point it shouldn’t be surprising to see the market somewhat unchanged as we have so much confusion. At this point, the market will likely continue to get plenty of questions about the Aussie, especially since the RBA recently raised interest rates far less than expected. For that reason I think we’re going to be all over the place, especially since the US dollar is a very strong currency right now, and of course the place people run to first when it comes to trying to find safety. At the end of the day, I think it’s a market that continues to be bullish, but I still believe the US dollar is probably stronger on the margin.
The market being as vociferous as it has been shouldn’t come as a huge surprise, simply due to the fact that there are so many concerns around the world regarding global growth, and of course the Aussie dollar is very sensitive to these concerns as the major exports from Australia all involve hard raw materials. As long as this is the case, then it is likely that we would see the Aussie more as a “sell on the rally” type of market. If we break above the 0.65 level it would obviously be very bullish, but even then I think we have the chance that 0.67 also offers a hard cap.
AUD/USD price prediction video for 31.10.22
For an overview of all of today’s economic events, check out our economic calendar.