The Australian dollar continues to see a bit of support, but at this point, the 200-Day EMA continues to be a bit of a barrier at this point. Ultimately, we have a lot of interest rate pressures in the United States causing chaos as well.
AUD/USD
The Aussie dollar gapped lower to kick off the trading session on Monday but turned around to rally. That rally was short-lived, and we did, in fact, fall from the crucial 200-day EMA.
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The 200-day EMA naturally is an indicator that a lot of people pay close attention to, and it has offered resistance yet again. If we were to rally from here, the 0.70 level and the 0.7050 level would both be considered potential resistance barriers. Markets breaking above both of those levels could open up a move all the way to the 0.72 level.
Ultimately, this is a market that remains very noisy and very choppy
The market selling off could open up the possibility of a move down to the 0.69 level, followed by the 0.6850 level. Ultimately, this is a market that remains very noisy and very choppy and will pay close attention to the interest-rate situation in the United States.
Australia is, of course, driven by a lot of commodities, and the economy in Australia is highly levered to what's going on in Asia. The Federal Reserve is likely to raise rates again between now and the end of the year by 25 basis points. We'll have to wait and see how that plays out.
But as things stand right now, this looks like a market that is still somewhat bearish. It's still looking for that support underneath, which still hasn't been broken. So, we'll see if there is demand closer to the 0.69 level. This is an area that I believe continues to see a bit of buying pressure. Whether it holds will remain to be seen.
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