The Australian dollar has fallen again during the trading session on Friday, as we continue to see the US dollar strengthen. Quite frankly, the Aussie dollar continues to struggle at the hands of the Australian government, which of course has been locking down everything at the drop of hat. That continues to work against Australian growth, and housing prices in Australia are finally starting to suffer as well. Beyond that, we also have to keep in mind the Chinese economy slowing down, and that of course will have people selling off the Aussie dollar by proxy.
AUD/USD Video 23.08.21
The big story here is probably the US dollar, and once going on with it. Ultimately, if the US dollar strengthens than the Aussie will fall right along with several other currencies. Looking at this market, we are most certainly oversold, so I think that some type of bounce is likely to come into the picture, and therefore I think that if you are not already involved, you probably are best served waiting for some type of bounce before you start shorting signs of exhaustion will be jumped all over, and clearly at this point the Australian dollar will continue to suffer at the hands of the greenback.
The real question now is whether or not the 0.70 level will hold the Australian dollar up, as it is a big figure and an area that has offered quite a bit of psychological importance as well as structural importance. If we break down below there, the Australian dollar will almost certainly collapse at that point in time. The US dollar is starting to see a lot of strength in general, and that of course will show itself here.
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