- The Australian dollar has done a lot of back and forth noise during the trading session on Thursday as we are hanging around the 50 day EMA yet again.
- The market of course will continue to pay close attention to the noise that has been a major factor in this market.
- It's also worth noting that this is a market that has been basically stuck in a range.
- So, at this point in time, the market is likely to continue to see the 0.62 level below, offering support with the 0.64 level above offering significant resistance.
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The market is going to continue to see a lot of questions asked about global growth and the US dollar. Ultimately, we are sitting right in the middle of this range and therefore I think we are basically at the fair value level if you will.
All things being equal, this is a market that looks like it's trying to form some type of base, but it also needs some clarity with the tariff wars, which will directly influence the Australian economy, which is likely to be susceptible to a lot of commodity losses in the markets. The fact that if Chinese goods specifically get tariffed and start to slow down, then you have a real potential problem with the Australian economy as it is so highly levered to that part of the world.
All things being equal, this is a market that continues to see a lot of choppiness, but ultimately this is a market that will eventually have to make a bigger decision. At this point though, it looks like it is a short term back and forth kind of range bound scalpers market.
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