AUD/USD Price Forecast – Australian Dollar Breaks Down Again
The Australian dollar has broken down during the trading session on Wednesday, as we continue to see a lot of US dollar strength in of course people running away from anything in Asia. The Australian dollar has been extraordinarily week, and it certainly seems as if it is only a matter of time before we break down yet again. At this point, the market is likely to see continued negativity, and I think at this point it probably goes looking towards the 0.63 level which is the bottom of the range that we had been in during the financial crisis over a decade ago. Yes, we are that low as far as value is concerning.
AUD/USD Video 27.02.20
Looking at the Australian dollar, you should keep in the back of your mind that it is highly levered to China, and at this point in time it’s likely that the market continues to get hammered as China is still fighting the virus and not quite back to work. As long as that is the case, there will be a lot of weight around the neck when it comes to the Aussie, as China is by far its biggest customer. As long as that’s the case, Australia continues to suffer. I do believe that the rate cuts will be coming rather soon, and the market is presently in the process of trying to price that in. Overall, rallies are to be sold and I think the 0.67 level above is essentially the “ceiling” in the market.
This article was originally posted on FX Empire
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