Market analysts have a bullish outlook for the Australian Dollar (AUD) vs U.S. Dollar (USD). In reaction, the AUD/USD pair is poised to strengthen above the 200-day Simple Moving Average (SMA). Politics aside, the Treasury complex is seeing a much wider risk-on sentiment in the financial markets. Consequently, the USD has lost much of its daily strength.
After a scary downturn in trading sessions prior, gold has begun to rally, recovering off lows around $3,300 per troy ounce. With all eyes on the big recovery, gold prices are once again nearing that all-important $3,330 mark. Shutterstock Gold prices and currency dynamics are each fanning the flames of investor fears. They’re particularly keen on the implications for the AUD/USD exchange rate.
With the risk-on sentiment gaining traction, investors and traders are moving their milk around. This kind of behavior typically increases the demand for “safe haven” commodities, such as gold. Specifically, it can be bullish for the Australian Dollar, due to Australia’s large gold mining industry. The market is abuzz with expectation as we count down the days until Wednesday. Traders will be intently focused on next Australian inflation figures, which could heavily influence the AUD’s trajectory moving forward.
According to analysts have predicted price below the AUD/USD pair. If it is able to maintain its momentum above the 200-day SMA, a potential bullish trend may form. That could give it the momentum needed to test stiffer resistance levels above. Now, the outlook does indeed look promising, for a whole host of factors, topped by a weakening USD. It’s had a tough time holding up as the investor mood swings.
We’re still watching the global macro picture, particularly as it relates to developing trends that could challenge the dollar’s reserve status. The upcoming inflation measures from Australia will be closely watched for clues about the domestic economy and what the RBA should do with the interest rate expected. These are all important factors, as they add up in the big picture being used to measure how strong or weak is the AUD vs. the U.S. dollar.