The Australian dollar rebounded in Wednesday’s trading session as more of a “risk-on” type of trading came to the fore. At the end of the day, think that this is a market that will continue to be a buy-on-dips type situation unless of course we get past the handle of 0.75, which is a big number, round and psychologically. significant. At the end of the day, I think we’re going over it and it’s clear that whatever happens it looks like the Aussie wants to go higher.
Video AUD / USD 10.12.20
This doesn’t mean we’ll have an occasional pullback, but these should end up buying opportunities as the US dollar continues to suffer. With enough time, it is very likely that we will see the 0.75 handle withdrawn and the market will then turn to the 0.80 level. That doesn’t mean we’re getting there overnight, but it’s clear the Aussie has been in a nice uptrend for quite some time, and it’s hard to imagine a scenario where I would be short.
After all, we’ve been in a strong uptrend for quite some time, and it’s very likely that we’ll continue to see value hunters coming into this market, as it’s obvious they want to go higher. With all the stimulus coming from the United States, it is likely that the Australian dollar will continue to move higher. However, I believe the 0.7250 level is now the market “floor”.
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