Latest News

AUD/USD Forecast: Continues to Crumble – 11 October 2022

After all, picking up “cheap US dollars” will probably continue to be the same trade that works for you as it has over the last several months.

The AUD/USD has fallen below the 0.63 level at one point during the trading session on Monday, as we continue to see the US dollar act like a wrecking ball against almost everything.Ultimately, this is a market that I think will continue to look very soft, as the Australian dollar is so highly levered to commodity markets, and therefore if the pay close attention to what’s going on over there. At this point, the US dollar continues to be the strongest currency out of all the major ones, and I do not see that changing anytime soon.After all, the Federal Reserve remains tight, while the Australian central bank recently raised rates “only 25 basis points” instead of the expected 50.

Advertisement

Because of this, I think we continue to see plenty of downward trajectory in this pair, and probably the Australian dollar against almost everything else. This is especially true in the AUD/NZD pair, as the Royal Bank of New Zealand rose interest rates 50 basis points the very next day. This is mainly because the Australian economy is so highly levered to its own housing market that higher interest rates are very toxic in this environment. Because of this, I think at this point you will continue to see this market be very volatile and negative, and therefore I think the currency markets will be pricing in a very loose RBA.

On the upside, the 0.64 level now looks to be potential resistance as it was previous support. Based upon “market memory”, there should be plenty of people interested in that area. After that, we start to look toward the 0.6530 level, and then eventually the 0.67 level that was so important for so long.

I think at this point, breaking above that could really shock the markets, but right now it looks like anytime we rally there should be plenty of sellers looking to take advantage of the slightest hint of exhaustion. After all, picking up “cheap US dollars” will probably continue to be the same trade that works for you as it has over the last several months. This is especially true against the Australian dollar after the RBA pulled back a bit from its aggressive stance against inflation. Because of this, I think the Australian dollar continues to fall against most things, especially the US dollar.

Ready to trade our Forex trading predictions? Here are some excellent Forex brokers to choose from.

What's your reaction?

Excited
0
Happy
0
In Love
0
Not Sure
0
Silly
0

You may also like

More in:Latest News

Leave a reply

Your email address will not be published. Required fields are marked *