Yahoo Finance AUD/USD Forecast – Aussie Continues to Look Sideways and Lackluster
Australian Dollar vs US Dollar Technical Analysis
The Aussie dollar has done very little in the early hours on Wednesday, and I think that might continue to be the case until we get through the inflation numbers on both Thursday and Friday in the United States, with the CPI and the PPI both coming out.
It could give us an idea as to how the Federal Reserve will behave overall. After all that, really the big question about almost everything right now. So, with that being the case, I think you’ve got a scenario where a short term pullback would more likely than not offer a lot of value, especially near the 0.67 level. Anything below there then starts to look at that 0.6650 level.
And with that, you also have to keep in mind the 50 day EMA is sitting right there. On the other hand, if we break above the 0.6775 level, it opens up a move to the 0.6850 level. I think that whatever move we do make, and right now it has to be said, it probably leans to the upside will be after these numbers are released.
What we need to see is like a shockingly low number on one of these, or perhaps even both of them. That could really send the Aussie higher, because it could have people betting on a loosening Federal Reserve, which at the end of the day, is the only thing most institutions want. So we’ll have to wait and see. But this is most certainly an interesting inflection point and things could get interesting soon.
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This article was originally posted on FX Empire
