The Australian dollar has gone back and forth in quiet trading on Friday, as the volatility is starting to shrink in most markets. It’s hard to imagine a scenario where traders would have liked getting too big in any position going into the weekend, as there are so many headline risks out there right now. The most obvious one of course is the US/China trade war, something that seemingly is never going to end. That ways upon the Australian dollar, so at this point it really doesn’t matter what happens in Australia, at least until certain things happen in either Washington or Beijing.
AUD/USD Video 25.11.19
Looking at the choppiness of this pair, the one thing that you can see is that we are making “higher lows” at the moment. This is a market that is trying to for some type of longer-term base, but quite frankly they are so many external factors right now that it’s difficult to get overly bullish about anything involving Australia. Given enough time, it’s possible that we may turn around but there are also concerns about Australian banks now, so that of course could cause some issues as well. All things being equal though, it does look like the Aussie has formed a bit of a significant support barrier below at the 0.67 handle, and that is the clearest spot on the chart to trade off of. Right now, there is minor support at the 0.6775 level, but it has only been established over the last couple of days, meaning that it is relatively new and not necessarily as reliable as the 0.67 level underneath. Short-term back-and-forth trading is probably what we are going to continue to see.
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This article was originally posted on FX Empire
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