The Australian dollar rallied a bit during the trading for the previous week, and the 0.69 level has been tested. However, we have also seen the last couple of days of the week show just how much resistance there is. Ultimately, I think that the market will probably continue to be very noisy and held hostage by the Americans and the Chinese in their trade dispute, but so far it looks as things are getting a bit better, and that could continue to drive a bit of money in the Australian dollar. However, it should be pointed out that the daily chart hasn’t exactly looked overwhelmingly bullish, even as things have calmed down between Beijing and Washington DC.
AUD/USD Video 16.09.19
With that being the case, I suspect there’s some type of underlying issue here. I know that the Australian housing markets have a lot of issues, so that could be one thing that’s getting in the way but quite frankly the Australian dollar looks very unlikely to outperform any other currency right now. In other words, if this market was to suddenly shoot up in the air, you probably are going to be better off buying another wrist sensitive pair such as the NZD/JPY or perhaps even the CAD/JPY. The Australian dollar just has not performed well in what should have been a stronger follow-through. I suspect that given enough time we do pull back but the reversal candle shouldn’t be ignored either. In other words, this pair is going to continue to be choppy and messy. Longer-term traders probably stay away.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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