The Australian dollar rallied quite significantly during the Friday session as we continue to find plenty of demand near the 0.7350 region. However, this was exacerbated on Friday by Donald Trump suggesting that the central banks around the world were doing their part, sitting on low interest rates while the US was aggressively raising theirs. He does not have the power to change this, so I think this is a short-term blip. I believe that we are going to continue to base in this area, so I would fully anticipate a bit of a pullback, before buyers perhaps come back into the marketplace to push even higher.

When you look at the longer-term charts, the Australian dollar is heavily supported just below, so quite frankly it’s not a huge surprise to see that we rallied, and I think the market was essentially just waiting for an excuse. Early during American trading on Friday got its excuse and jumped on that opportunity. I believe in the short-term, we remain range bound, but I do expect to see the Australian dollar rally eventually. However, keep in mind that the Aussie dollar is highly sensitive to the Chinese markets, which have been absolutely crushed lately. Overall, I do think that there are plenty of buyers below and eventually they will get their way.

AUD/USD Video 23.07.18

This article was originally posted on FX Empire

More From FXEMPIRE:

• Natural Gas Weekly Price Forecast – natural gas market forms a hammer

• S&P 500 Price Forecast – S&P 500 choppy to end the week

• AUD/USD Forex Technical Analysis – Move Through .7484 Changes Minor Trend to Up

• GBP/JPY Weekly Price Forecast – Sterling falls but has support underneath

• AUD/USD Weekly Price Forecast – Aussie bounces yet again

• U.S Mortgages – Back in Reverse, But Will It Last?