The price of AUDUSD is pegged to commodities. You can see this more clearly on the weekly or monthly time frame by adding "SPGSCI" to your chart to compare prices. Provided that the prices of commodities drops over the next few weeks, we will see AUDUSD move lower.
Current Interest Rates:
US Real Interest Rate: 5.5% (Cash Rate) - 3.3% (Inflation Rate) = 2.2%
Australia Real Interest Rate: 4.35% (Cash Rate) - 3.6% (Inflation Rate) = 0.75
Real interest rate refers to the rate of interest adjusted for inflation. As the US rate is higher than the Australian one, USD is much stronger than AUD. Therefore, we will be looking to short AUDUSD down to 0.658 and to 0.647 over the coming weeks.
These past few weeks we have seen AUDUSD hold its ground despite a strong US dollar. This is due to commodity prices having strong bullish momentum since the 5th of June.
Current Interest Rates:
US Real Interest Rate: 5.5% (Cash Rate) - 3.3% (Inflation Rate) = 2.2%
Australia Real Interest Rate: 4.35% (Cash Rate) - 3.6% (Inflation Rate) = 0.75
Real interest rate refers to the rate of interest adjusted for inflation. As the US rate is higher than the Australian one, USD is much stronger than AUD. Therefore, we will be looking to short AUDUSD down to 0.658 and to 0.647 over the coming weeks.
These past few weeks we have seen AUDUSD hold its ground despite a strong US dollar. This is due to commodity prices having strong bullish momentum since the 5th of June.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.