AUD/USD at the Mercy of the Greenback
The majors and the AUD were stronger yesterday, but the story so far this week has been the big turnaround in the Greenback.
The majors and the AUD were stronger yesterday, but the story so far this week has been the big turnaround in the Greenback.
A soft Greenback is really putting a bid under the majors and the AUD/USD has certainly seen some upward pressure.
The Aussie has bounced from the 0.7600 level and is now back above 0.7700. The 0.7600 has been very strong for the AUD/USD as we can see on the charts below and it has been tested in a big way on multiple occasions. We can actually see that price is almost making a little head and shoulders type pattern and that last higher low, is always a strong indicator of buying.
Interestingly, the falling USD did occur at the same time the US President Trump’s impeachment trial began and while there was no evidence presented on the first day. We did see a number of Republicans vote to impeach, which is also a clear sign of just how deep the swamp runs at the moment. Could the falling dollar be a sign of loss of confidence in Government? Time will tell.
AUD/USD Levels
We do have some minor Chinese data out later today, but that will likely not have much of an impact on the AUD/USD in my opinion.
Looking at the levels and I don’t think you need much help to point out what the major areas are at the moment. We can all see very clearly that the round number levels are holding very strong at the moment, highlighted by 0.7600 which we’ve already noted.
To the upside and we can expect to see a push towards 0.7750 in the near-term, with obviously 0.7800 being the highs for now. It’s also worth watching the broader US markets for some idea as to direction, with the SPX closing red for the first time in quite a while.
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