The Australian dollar rallied a bit in the early hours of Friday, as the Aussie looks to rally into the weekend. The range continues to be well-defined, with the 0.79 level and the 0.81 level both offering important barriers.
AUD/USD
The Aussie dollar has shown itself to be rather strong during the early hours here on Friday as the 0.69 level has offered a bit of a floor. The way we have bounced of course is a good sign, though really at this point I think all we have is a market that is trying to go sideways and sort out where to go next.
Ultimately the market has been consolidating between 0.69 and 0.71. As long as we continue to see this area hold, I think it's just the back-and-forth market that you are trying to get involved in in order to play the range, maybe looking for signs of overbought or oversold conditions. This market continues to see a lot of back and forth, and I think that’s the way it stays for some time.
Short-Term Range Dynamics
I do like this market in general for short-term trading. Longer-term trading probably going to be a bit of a chore here although it looks like we're forming a bullish flag, and it is worth noting that the RBA is expected to remain hawkish so the Australian dollar might be one of those things out there that moves against the US dollar while other currencies don't.
Top Regulated Brokers
Just keep that in mind, I don't have any interest in shorting the Aussie. If I want to buy the US dollar, I'll buy it against other currencies that I think are going to struggle a bit more. Ultimately, we have to take what we're given here. I think right now we're given a 200-point range to deal with and trade back and forth.
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