[ad_1]
The Australian dollar rallied slightly during Friday’s trading session as we continue to see the Aussie fluctuate in the same area of consolidation we have been in for some time. With this the market does not seem ready to go anywhere but I would also like to point out that there is huge resistance above the 0.74 level which continues to cause problems. Also, I think part of it may have been short coverage as we’re just going back and forth. I would also like to point out that there is the so-called “death cross” just above the 0.75 level of a few weeks ago, and therefore I believe the market will continue to respect the decrease. Plus, you might even argue for a bearish flag.
AUD / USD Video 16.08.21
Australia continues to lock itself in, and that of course is not going to do its own economy a favor, so in this case I think the Australian will continue to be punished. With the acceleration of M2 declining, which is not a good sign either, as it suggests that we are going to run into a little liquidity problem. It always drives up the US dollar because there is a huge demand for these dollars. Chinese economic numbers haven’t been very good lately, and that will of course eclipse what’s happening in Australia as well. With this, the market is likely to see a further decline if given enough time. However, we are in the middle of the slowest time of the year so that is part of what has happened.
Source link
