The Australian dollar has rallied a bit during the course of the trading session on Wednesday as it looks like we are still struggling with the idea of the 0.73 level. In fact, there has been a bit of a “brick wall” at the 0.7275 handle, but I suspect that the big figure also will cause a little bit of noise. The Australian dollar of course is very sensitive to China, and of course the commodity markets on the whole. All things been equal, commodities continue to show a lot of back and forth, and early in the day were dropping so it will be interesting to see if that extends into the Aussie dollar itself.
AUD/USD Video 06.01.22
Keep in mind that the US dollar of course is going be highly influenced by the interest rates, and therefore we need to pay close attention to what is going on in the 10 year yield, which has recently seen a surge in yields. That being said, it is also getting close to the top of range so that may come out of the equation before it is all said and done. Furthermore, the 50 day EMA is sitting right in the midst of this consolidation area, so be interesting to see whether or not the technical traders pay close attention to that.
Underneath, the 0.72 level is an area that should offer support, but if we were to break down below that level then we could go looking towards the downside. If we were to break above the 0.73 level above, then it opens up the possibility of a move towards the 0.75 handle, an area that of course will attract a lot of attention.
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This article was originally posted on FX Empire