The Aussie dollar has pulled back just a touch during the trading session here on Tuesday, but it does look like we're trying to find a little bit of support near the 0.7150 level.
The Aussie dollar is likely to continue to be noisy and an interesting place to live because, quite frankly, the Aussie is one of the few currencies that has a central bank that has raised rates recently, and I think that continues to be a major driver.
The AUD/USD market will continue to see a lot of questions asked about it because of whether or not we get good news coming out of the Middle East or whether or not higher interest rates in America bring down the Aussie, or if commodity markets scream higher, which they very well could, which is good for the Australian dollar.
A Buy on the Dip Scenario
I think, all things being equal, we've got a situation where the Aussie is likely to be more of a buy on the dip type of scenario, and it would not surprise me at all to see this market go looking to the recent highs near the 0.7275 area. This would take work, but wouldn’t surprise me at all.
Top Regulated Brokers
If we were to break down below the 0.71 level, then maybe we have a deeper correction, but right now, this looks like a market that I think is fairly well supported, and I think a lot of people are interested in owning the Aussie dollar. Again, I have no interest in shorting this pair, but I do recognize that it could be quite choppy.
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