AUD/USD Forecast Today 05/02: Australian Dollar Continues To

(MENAFN- Daily Forex) The Aussie continues to see a lot of noise, but at this point, we have a lot of questions about the market overall/USD

The Australian dollar has seen a bit of weakness and as a result it looks like we are going to stay within the same consolidation area that we have been in for a while with the 0.69 level on the bottom and the 0.71 level at the top.

The market continues to be very noisy but I think overall this is a currency pair that is a little bit different than many of the other ones as although the US dollar is considered to be weak and the Federal Reserve likely to cut rates the Australian dollar is backed up by the Reserve Bank of Australia who is likely to raise rates later.

Furthermore, the Chinese economy is showing signs of strength in manufacturing but at the same time so is the US economy so perhaps this ends up being a global scenario where manufacturing picks up in a couple of the bigger economies such as the United States and China Floors and Upside Targets

The market breaking below the 0.69 level could be a significant floor and if we were to break down below there then it could open up the possibility of a move down to the 50-day EMA which is near the 0.6750 level.

EURUSD Chart by TradingView

If we break above the 0.71 level, then it's likely that traders will continue to push the Aussie dollar towards the 0.72 level possibly even higher than that.

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I would expect some choppy behavior but truthfully if I wanted to buy the US dollar right now, I think you have a situation where although it might work in the case of the Aussie dollar there will be easier currencies to play against the US dollar going forward.

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