The Australian dollar fell rather hard during the trading session on Wednesday, reaching down just below the 0.74 level as it was announced that the Americans are levying another $200 billion with the tariffs to the Chinese, which of course will be retaliated against. Keep in mind that the Australian dollar is highly sensitive to what goes on in Asia, as Australia’s supplies Asia with a lot of its raw materials. Because of this, a you should always keep in mind that “Asia” typically means China, the AUD/USD pair will be highly sensitive to these headlines, and therefore could be a bit erratic.
However, I think that value hunters are starting to look at the Aussie dollar again, and I would not be surprised at all to see this offer a bit of a “base” for a move higher. I think that there is a significant amount of support underneath that extends down to the 0.7350 level, and therefore I don’t have any interest in shorting this market until we break down below that level. As I don’t see that happening anytime soon, I am essentially waiting for some type of impulsive candle to the upside to follow. If we did break down below the 0.7350 level, then I would consider shorting this market. However, in the meantime I don’t see that happening so I am patiently waiting my opportunity to pick up the Australian dollar “on the cheap.” Although messy, so far the trade tariffs have been manageable.
AUD/USD Video 12.07.18
This article was originally posted on FX Empire
More From FXEMPIRE:
- U.S Inflation Figures and ECB Minutes to Drive the USD and the EUR
- Commodities Daily Forecast – July 12, 2018
- USD/JPY Price Forecast – US dollar rallies towards the highs again
- USD/CAD Making a U-Turn From the Support
- Silver Price Forecast – Silver markets fall during Wednesday volatility
- Oil Prices Drop Back into the June Price Range while USD Strengthens, Global Stocks Recover