Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has gone back and forth during the course of the trading session on Friday, as we continue to look for some type of directionality. Quite frankly, the jobs number in the United States missing by something like 60,000 is very negative risk off type of situation. The 0.65 level seems to be a little bit of an epicenter of support. And breaking down below there, we could see the market look towards the 0.6450 level where there is even more support.

If we turn around and break above the 0.6565 level, then I think it opens up the possibility of a move to the 0.6650 level. All of that in mind, it seems like the market continues to dance around due to the idea of what the Asian economies are doing, and also the idea of what the global growth picture looks like.

All things equal, I think this is a market that continues to chop back and forth in the same range we’ve been in for most of the year. Nobody really knows what to do and at this point in time we are looking at a situation where we might get cuts in America, which works against the value unless there are serious economic concerns. And then that means that the Australian dollar, of course, is not in favor. We’ll just have to see how this plays out. But right now, I think not much will have changed by the time this all shakes out.

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This article was originally posted on FX Empire