Australian Dollar vs US Dollar Technical Analysis
The Australian dollar has initially tried to rally during the day on Friday but seems to be giving up any signs of strength as the market continues to see plenty of exhaustion. In fact, the Australian dollar peaked after the RBA statement that left out the word “patience.” Initially, it looks like the Aussie was going to take off and reach the 0.78 level eventually, entering a “buy-and-hold phase.” However, we have since seen a complete reversal in attitude, mainly due to the Federal Reserve.
The Federal Reserve released its meeting minutes on Wednesday, which had a much more hawkish tone than people had anticipated. Because of this, the market looks as if it is trying to reprice the idea of massive interest-rate hikes, which is positive for the US dollar. That being said, if we can break down below the 0.7450 level, is very likely that the Australian dollar needs to pull back at least 100 pips.
Keep in mind that the Australian dollar is highly levered to commodities and risk appetite as well, so it will be worth noting what is going on around the world as a result. Ultimately, the market is going to continue to see a lot of noisy behavior, but it does look like we are setting up for a bigger move sooner or later. The Australian dollar has also has to worry about what is going on in China, as it is considered to be a proxy for that economy. At this point, the weekly candlestick would end up being a massive shooting star right at resistance.
AUD/USD Price Forecast Video 11.04.22
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This article was originally posted on FX Empire
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Source: https://finance.yahoo.com/news/australian-dollar-looks-threatened-130202989.html