Australian Dollar stays strong in risk on scenario (AUDUSD)

  • The “risk on” phase has contoured into the second week of September as global geopolitical tensions ease.
  • Positive news in early September regarding Brexit, the US/China trade war and from Hong Kong have seen stock markets advance higher.
  • This positive news for the global economy has encouraged a push higher for the Australian Dollar, which tends to do well in a “risk on” environment.
  • Furthermore, the US Dollar has been weakening, having been previously strengthened, as a safe haven.
  • The combination of these factors has seen a strong AUDUSD advance, which is still aiming higher into mid-September.

AUDUSD: Solid consolidation leaves upside risks

A high-level consolidation Tuesday above .6835 support after Monday’s advance just above .6862/68 resistances and a push higher already this morning to .6885, still building on the earlier September last week surge through the key .6822 barrier (for an intermediate-term bullish shift), to keep the bias higher Wednesday.

The early September push above the key .6816/22 area set an intermediate-term bull trend.

For Today:                                                        

  • We see an upside bias for .6885; break here targets .6899 and maybe then towards .6917.
  • But below .6835 quickly opens risk down to .6809.

Intermediate-term Outlook – Upside Risks: We see an upside risk for .6899.

  • Higher targets would be .7000 and .7082.
  • What Changes This? Below .6756 shifts the intermediate-term outlook back to neutral; through .6885 is needed for an intermediate-term bear theme.

4 Hour AUDUSD Chart

aud usd chart

Comments on this analysis

Your email address will not be published. Required fields are marked *

Latest News

The Forex Zone
The Forex Zone – Risk On

The US Dollar and the Japanese Yen weaken as the risk on environment continues. The Forex Zone looks at day trade themes for the major Forex rates; EURUSD, GBPUSD, USDCAD, AUDUSD, NZDUSD and USDJPY. EURUSD: Risks flip back higher A very whipsaw session Thursday through the ECB with an initial selloff through to just hold … Continued

Euro in focus into key European Central Bank (ECB) Meeting

All eyes will be on the European Central Bank (ECB) Meeting today, which much anticipation around a more dovish shift. US Dollar weakness has seen EURUSD rebound in September with a resumption of a global “risk on” theme, but the EURUSD Forex rate losses over the past 24 hours highlight caution into the meeting. EURUSD: … Continued

Euro firm ahead of the ECB (as US Dollar weakens)

EURUSD gains over the past week have primary echoed US Dollar losses, as global financial markets have shifted to a “risk on” mode, with global geopolitical tensions easing. Positive news last week around the US-Sino trade war, Brexit and from Hing Kong have seen stock averages rally, whilst the US Dollar has weakened, having been … Continued

Forex News Category
More Wall Street Propaganda

One of the best examples of Wall Street’s propaganda machine at work is its willingness to dismiss recessionary signals. The inverted yield curve is a perfect example. Case in point, look at the story that was put out on Market Watch dated November 27th 2006—exactly one year before the Great Recession officially began, the stock … Continued

Forex Brokers in your location