Yahoo Finance Australian Dollar Takes a Bit of a Hit
The Australian dollar has fallen again during the trading session on Thursday as we have broken down below the significant 0.71 handle. This is an area that will continue to attract a certain amount of attention, as the market has found it to be supportive a couple of times. All things being equal, the market is likely to continue seeing downward pressure based upon US dollar strength more than anything else, and at this point in time it is likely that we will see an attempt to get down to the 0.70 level. The 0.70 level of course is a large, round, psychologically significant figure, and an area where we have seen a lot of interest.
AUD/USD Video 28.01.22
To the upside, I believe that the 50 day EMA will continue to be respected as resistance, and therefore we need to look at it as such. With this being the case, I do believe that it is probably only a matter of time before sellers jump back in on any short-term rally, because quite frankly this is a market that is highly sensitive to risk appetite, something that is disappearing quite rapidly. With this, I would not surprise me at all to see this market break down below the 0.70 level, although that will not necessarily be an easy thing to do.
Expect a lot of volatility in choppiness, which you will see all across-the-board, not just here. The volatility of markets around the world will show itself here as well, as the Aussie dollar is going to be sensitive to all of it, and especially anything that revolves around China.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
