The Australian dollar has pulled back a bit during the trading session on Thursday but has also seen a little bit of a bounce since then as market participants continue to see a lot of value underneath the 0.6775 handle. There is support below at the 0.67 handle as well, which has served as a bit of a “double bottom” in the market. At this point in time I think it’s only a matter of time before the buyers stepped back in, but even if they don’t at this point, the 0.67 level should be very difficult to break down below. If we were to do so, that would be extraordinarily negative for the Australian dollar. Having said that, market participants will probably continue to be whipsawed by the ridiculous headlines.
AUD/USD Video 29.11.19
The Australian dollar is essentially on tradable at this point. This is because it has such a high correlation to the US/China trade talks, which of course haven’t really gone anywhere as of late. The pair tends to be traded by algorithms these days, and most of the people I speak to aren’t even bothered. Granted, there will come a time when the Americans and the Chinese come together on something, and when they do this will be one of the first places money flows to. It is because of this that we need to keep an eye on this pair. But until the Americans and the Chinese get it together, this is a pair that’s going to continue to chop around and do very little from a bigger picture.
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This article was originally posted on FX Empire