There’s the obvious gold market correlation with the Australian dollar that you should be paying attention to, just as there is the obvious correlation with the US dollar itself as it is half of the equation. Looking at this chart, we are decidedly in a downtrend, there’s probably no way to argue that. Overall, I anticipate that the market will continue to sell on rallies, but in the short term it looks as if we could be getting ready to form a bit of a bounce. This will be exacerbated by any type of “risk on” move in the equity markets around the world, and of course commodities.
The destruction cause to the Australian dollar due to trade tariffs between the United States and China cannot be understated though, as Australia supplies China with so many of its raw materials for construction, and of course manufacturing. With that in mind, pay attention to the headlines, but if things stay relatively quiet, I suspect that there is a bounce coming in this pair. The alternate scenario of course is that if we break down below the vital 0.7350 level, the market is probably going to continue to go lower over the longer-term. I think the one thing you can count on is volatility, and it’s only a matter of time before it picks up yet again.
AUD/USD Video 22.06.18
This article was originally posted on FX Empire
More From FXEMPIRE:
- Bitcoin Cash, Litecoin and Ripple Daily Analysis – 22/06/18
- Crude Oil Price Forecast – choppiness continues on Thursday as we await OPEC
- EUR/USD Price Forecast – Euro rallies on Thursday after touching major support
- Gold Price Forecast – Gold markets continue to show weakness on Thursday
- AUD/USD Price Forecast – Aussie continues to find support just below
- Price of Gold Fundamental Daily Forecast – Investors Finally Showing Some Reaction to Geopolitical Events