AUD/USD Price Forecast – Australian Dollar Continues to Chip Away at Resistance

The Australian dollar has rallied again during the trading session on Thursday to reach towards the 0.73 level, which is an area that has seen a lot of selling pressure as of late. That being said, if we were to break above the 0.73 level, then it is likely we go looking towards the 50 day EMA above. The 50 day EMA of course does attract a certain amount of attention, but it will more than likely be resistive due to the fact that it has been sloping downward.

AUD/USD Video 24.09.21

On the other hand, if we were to break down below the lows of the last couple of sessions, that would be an extraordinarily negative turn of events, opening up the move towards the 0.71 below, and then eventually the 0.70 level. This would obviously be a very pro-US dollar move, and of course a very “risk off move.” With this being the case, it is worth noting that a lot of people are throwing money into the US bond market, and therefore it will continue to attract more US dollars.

The Australian dollar is highly levered to China, and of course there are a lot of concerns out there when it comes to Evergrande, as there are reports now that China is going to let the company fail before it is all said and done. If that is the case, contagion risks will be front and center when it comes to the conversation. Keep an eye on headlines and risk appetite because that is a major driver of this market.

For a look at all of today’s economic events, check out our economic calendar.