Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
Australian Dollar Forecast: Key AUD/USD Levels to Watch, Risk of Topping Out

Australian Dollar Forecast: Key AUD/USD Levels to Watch, Risk of Topping Out

What's on this page

Australian Dollar Analysis and Talking Points

AUD/USD | Risk appetite has seemingly improved throughout the week amid policy relief from the Federal Reserve, which in turn has seen US equities soar. That said, this may also reflect a front running of month and quarter end portfolio rebalancing, where expectations are for notable inflows in equity markets given its underperformance relative to bonds over the quarter. However, we remain wary of this bounce and believe this is typical of a somewhat bear market rally. In turn, we see risks remain skewed to the downside for the Australian Dollar as its corrective uptick is faded with a failure to consolidate above 0.6000 confirming as much.

AUD/USD Bearish
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 6% -3% 2%
Weekly 20% -24% -1%
Learn How to Use Sentiment in Your Trading Strategy
Get My Guide

On the technical front, near term support is situated at 0.6004, which marks the global financial crisis low. However, a break below leaves the currency at risk of a retest towards the weekly low at 0.5700 before the 2020 at 0.5500.

Implied Weekly range (0.5850-0.6264)

0.6004Oct’08 Low0.6090Weekly High
0.5950-0.627176.4% Fib
0.5700Weekly Low0.6300-

AUD/USD Price Chart: Daily Time Frame

Source: IG Charts

--- Written by Justin McQueen, Market Analyst

Follow Justin on Twitter @JMcQueenFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.