Yahoo Finance AUD/USD Weekly Price Forecast – Australian Dollar Continues to Show Confusion
The Australian dollar initially pulled back during the week but then spent most of its time trying to break above the 0.60 level. By doing so, the market has shown its resiliency but quite frankly the Australian dollar is going to have a lot of trouble going forward, mainly because it is so attached to the Chinese economy. Granted, China seems to be coming through the coronavirus situation on the other side now, but even if China itself does better, it still has major clients out there like the European Union and the United States slowing down and therefore buying less Chinese goods. This has a bit of a “knock on effect” as this means that there will be less demand for Australian commodities.
AUD/USD Video 30.03.20
This has been a reasonably decent bounce, because when you look at the weekly chart you can see clearly that the previous week had seen the Australian dollar drop all the way down to the 0.55 handle. That being said, it’s quite common to see the market retest these extreme lows, in order to see whether or not it’s going to form a bit of a base to turn things around. Otherwise, the market could find itself reaching down towards the 0.50 level underneath, which is a major support level on the monthly chart, not to mention the fact of how psychologically significant a number like 0.50 can be on a chart. In fact, even if we do break down, I believe that the 0.50 level will probably be about as low as we go.
This article was originally posted on FX Empire
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