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AUD/USD Price Forecast – Australian Dollar Pulls Back Into Support

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·1 min read
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The Australian dollar fell rather hard during the course of the trading session on Wednesday as the CPI numbers in the United States came out much hotter than anticipated. That being said, traders have turned the selling around rather quickly, perhaps banking on the idea of the inflation being “transitory” as the Federal Reserve has stated multiple times recently. With that being the case, I think that this is a market that will continue to see buyers on dips, as commodities have been so highly sought after.

AUD/USD Video 13.05.21

Underneath, the 50 day EMA is rising and reaching towards price, so that should have a certain amount of an effect on the market as well. We have broken above the 0.78 level over the last couple of days, which was a major victory for the buyers. That does not mean that we will take off straight up in the air to reach the 0.80 level, but that is my target given enough time. The US dollar has been on its back foot in despite the fact that there is inflation in the United States, it still is not enough to have the Federal Reserve step in and tighten monetary policy anytime soon. With that in mind, it is likely that the Australian dollar will continue to see upward pressure over the longer term, so I am bullish, but I also recognize that this is going to be a very choppy situation as the Reserve Bank of Australia is also light years away from tightening.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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