AUD/USD Forecast: Has Quiet Session to Kick Off the Week – 28 March 2023
The AUD’s performance is linked to various factors, including the global growth situation and commodity prices.
On the other hand, any rally in the AUD would need to overcome potential resistance at the 0.67 to 0.68 level. The 50-Day EMA sits around the 0.68 level and is gradually decreasing, suggesting that it could pose a significant obstacle for the AUD. If the AUD were to break above this level, however, it could surge higher, potentially reaching the 200-Day EMA.
The AUD’s performance is linked to various factors, including the global growth situation and commodity prices. The AUD is highly levered to the commodity markets, and any movement in commodity prices could affect its performance. Furthermore, copper, a major Australian export, tends to do well when the global economy is growing. The AUD also has a strong correlation to the Chinese economy, which has been a source of concern for investors recently.
In conclusion, the AUD looks negative from a longer-term perspective, and investors should be cautious in the short term. While there are a lot of questions about the global growth situation, commodity prices, and the Chinese economy, the AUD will continue to move based on potential growth. The commodity markets and the Chinese economy will likely play a significant role in the AUD’s performance going forward. Investors should keep a close eye on the 0.66 level and potential resistance levels around 0.67 to 0.68.
Overall, the Australian dollar is facing some headwinds, but there are also some potential catalysts that could drive it higher. For example, if the global economy recovers from the pandemic and demand for commodities increases, the AUD could benefit. Additionally, if China’s economy continues to rebound, that could provide a boost to the AUD since China is a major trading partner of Australia.
It’s also worth noting that the AUD has historically been viewed as a proxy for risk appetite in the markets. When investors are feeling optimistic about the global economy and willing to take on risk, they tend to buy the AUD. On the other hand, when there’s a flight to safety and investors are seeking out safe-haven assets, the AUD tends to weaken. So, the broader market sentiment could also impact the AUD’s performance.