- During Monday’s trading session, the Aussie initially attempted to rally but failed to do so as there weren’t any significant economic data to fuel investors’ sentiments.
Aussie looking for direction
So far today, the AUD/USD currency pair price has been fairly uneventful. In the beginning we did try and push higher after that, but it makes sense for us to have seen this reversal since there were no major economic releases out during the day. That being said, if this is going to be true then overall markets are likely going to be calm. As always, it is important to remember that the Australian dollar is highly dependent on such factors as global growth in general, China, Asia as a whole and of course interest rate differentials considering that when it comes down to trading, the Federal Reserve remains at the forefront.
Federal Reserve cuts?
Some analysts anticipate a cut from the Fed in 2024. However, it may also be necessary to ask if other central banks would reduce their rates. After all, there are signs of slowdown in economic growth which will continue to sway traders when evaluating risk appetite for taking their positions across markets etc. Ultimately, due to uncertainties that abound in world affairs today, therefore, expect massive noise in relation to Australian Dollar. Generally, AUD/USD can at times be viewed as an indicator of market sentiment towards risk. Keep in mind that when you trade the Australian dollar, you are betting on stronger economic output around the world. This is why a lot of times you have to pay close attention to stock markets and the like. Gold also has its influence, but at the same time gold can be a safety trade, which works against the Aussie dollar, so don’t blindly follow that correlation.
Support is substantial below for AUD at 0.65 level which I consider as near term market floor. On the flip side of things ,if we can overcome 50 day EMA then retracing back towards 0.67 handle isn’t out of reach as this region was an equilibrium zone for some time given that major consolidative area extends from aforementioned 0.65 level underpinning till mentioned above 0.69 level. All else being same ,I feel like Australian dollar might bounce from here more than not ,but I cannot say if it alters longer-term path of pair.
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