The AUD Rises as the Greenbacks Dumps

It was another new trading session yesterday, but the falling Greenback continues to be the story that cannot be ignored.

Yesterday, I spoke about the key factors behind the demise of the USD. They were:

• The ever-increasing money printing from the Federal Reserve used to purchase US Government Bonds – expanding the money supply and effectively devaluing the dollar.
• The widespread fraud in the US election, adding to the loss of trust in Government.

The tumbling Greenback continued and we can see that the US Dollar Index took out the lows and is now pushing into new territory.

Price is pushing towards 89.50 and appears to have broken out of that key 90.00 support level that has been holding for some time. The move propped up, not just the AUD/USD, but also the other majors and will likely also see money flowing towards WTI, GOLD and even BTC which printed new highs overnight.

The Aussie is the one we focus on most during the Asian session and as we can see below it took out the highs and is now pressing up into the 0.7700 level this morning.

Price is up around 0.2% at the time of writing with the China data to be released shortly. If the test fails, we have resistance turned support at both 0.7650 and 0.7640, so there is a chance of a pullback.

It’s also worth noting that given that it is the final trading session of the month, quarter and year, we sometimes get some strange flows that can be counter to the most recent trend, as large funds lock in profits and move positions around.

For the time being, we remain bullish and will be watching the 0.7700 closely to see if this test can hold.

ABOUT THE AUTHOR See More

Rowan Crosby

Asia-Pacific Analyst

Rowan Crosby is a professional futures trader from Sydney, Australia. Rowan has extensive experience trading commodities, bonds and equity futures in the Asian, European and US markets. Rowan holds a Bachelor of Finance and Economics degree and is focused heavily on Investment Finance and Quantitative Analysis.

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