The Australian dollar has rallied a bit during the trading session on Thursday to reach towards the 50 day EMA, which of course is an indicator that a lot of people pay close attention to. The 0.74 level above has been significant resistance, and therefore I think it is going to be difficult to simply chop through that level. Ultimately, I think that this is a market that is trying to figure out whether or not it can continue to go higher, but ultimately the jobs figure will probably have a lot to say about that.
AUD/USD Video 03.09.21
This point, if we get a daily close above the 0.74 level, then it is likely that we could go looking towards the 200 day EMA. On the other hand, if we turn around and wipe out the gains from the Thursday session, that could very well be a sign that we are going to go lower, perhaps reaching down towards the 0.71 handle, which is where we had seen a significant bounce from. After that, the market is likely to continue to go looking towards the 0.70 level underneath, which was my longer-term target to begin with.
A lot of this is going to come down to global growth, but Jerome Powell has recently suggested that the Federal Reserve is going to taper this year but is still light years away from doing anything close to raise interest rates. That has caused a bit of a relief rally, but at this point in time we have to figure out whether or not we are going to continue higher, or if the most recent trend continues?
For a look at all of today’s economic events, check out our economic calendar.