The Australian dollar has rallied a bit during the trading session on Friday as we continue to see a lot of back and forth in a range. The 50 day EMA is being tested, and that of course is the level that a lot of traders will be paying attention to define the trend. Ultimately, if we were to break above the 50 day EMA then we could go looking towards the 0.69 level as well. All things being said though, it’s very likely that the market will continue to struggle in general.
AUD/USD Video 14.10.19
Quite frankly, the only thing that would push the Australian dollar higher for a longer-term move would probably be something related to the US/China trade talks going through. If they do in fact strike some type of deal, the Australian dollar will skyrocket to the upside. That also tells you that if some type of breakdown in the talk should send this market right back down in reaching towards the 0.67 level. All things being equal, this is a market that remains range bound until we see some type of resolution to the Americans and the Chinese going back and forth. Remember, Australia is highly sensitive to the Chinese economy, as the Australians supply China with so much of its copper, iron, aluminum, and many other hard materials for construction and manufacturing. Beyond that, the Australians have to worry about the housing market that is struggling but overall this is all about US/China.
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This article was originally posted on FX Empire
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