- Early in Thursday's trading session, the Australian dollar strengthened as we got closer to a significant resistance level.
- Having said that, the US jobs report, which is expected to be released on Friday, will undoubtedly have a significant impact.
AUD/USD Gains Early on Thursday
The Australian dollar has made significant gains during Thursday's early hours of trading, but it appears that we are about to approach a significant resistance barrier. As a result, I believe that traders will continue to exercise caution in this area. Ultimately, this market has demonstrated that it has numerous problems in this area. Given that, you have to assume that sellers will eventually enter the market. Nonetheless, the market might surge higher if we were to break above the 0.6650 mark.
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Remember that Friday is the jobs report day. As a result, I believe that many individuals will exercise caution in this regard, so I'm not necessarily willing to invest a large amount of money in the market just yet. On Friday, things would be very different if we were to break out and remain above that level, and I believe the Aussie could rise as high as 0.69. If we continue this general consolidation, I think it's highly likely that we will retreat from here and possibly even drop all the way back down to the 0.6450 level. I just believe that we are a little bit stretched in the short run and I don't see why the Australian dollar itself will be a particularly interesting currency unless there is some kind of massive sell off in the US dollar overall. I don't even think we go that far to the downside.
Remember that it is closely related to commodities markets, international trade, and the Asian economy in general. Thus, you need to monitor everything. That being said, I'm still neutral, but I'm aware that we're getting pretty close to a location that might indicate a breakout. Having said that, I believe there is a fantastic buying opportunity if we are above that level by late Friday.
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