Australian dollar dips but finds buyers on Wednesday

The Australian dollar pulled back initially during trading on Monday but found plenty of support near the 0.7640 level to go higher. The market continues to be very noisy, and of course sensitive to global headlines and of course risk appetite. I think that the market will start to respect the 0.76 level as a potential “floor” in the market, and I think that given enough time we will probably continue to reach towards the 0.78 level. The 0.76 level continues to be a bit of a support level that I think will mean quite a bit for the market.

If we did break down below the 0.76 level, the market could reach towards the 0.7550 level, possibly the 0.75 level after that. If we go higher, and I think we will eventually, the market probably goes looking towards the 0.78 level, which has been structurally important. Beyond that, we could go as high as the 0.80 level. Pay attention to the Gold markets, that of course can help the situation, as the Australian dollar is highly sensitive to gold. If gold rallies, that gives us another reason to think that we are going to go higher. I believe that the Australian dollar will also be sensitive to the pending conversations between the Americans and the North Koreans, as the Australian dollar is a bit of a proxy for Asia. However, if things blow up a bit, this market will probably be one of the first ones to fall.