Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has gone back and forth during the course of the trading session on Thursday, as it looks like we are trying to figure out where we are going next. The 0.6650 level above is a significant barrier, and the fact that we are pulling back from there is not a huge surprise. Part of what we are seeing is the fact that we got a slew of U.S. economic numbers that were a little hotter than anticipated. Underneath, we have the 0.6450 level as massive support, and although we’ve seen a nice bounce, we crashed into that level previously. This is where I think the market has a “hard floor” built into it.

So, I think the only thing that you can take away from this chart is that it’s very likely that the Australian dollar, but it will probably do so in a massive choppy way in order to get as many traders on the wrong side of the trade as possible. You will need to wait till wide swings run out of momentum to get involved because quite frankly, if you look at the chart for the entirety of the year, most of it is just choppy, messy trading.

This does make a certain amount of sense considering that the Australian dollar is highly levered to Asia, global growth, and commodities, all of which are a big question at this point in time. With that, I remain fairly neutral when it comes to the Aussie dollar, and therefore am simply an observer.

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