Pretty much every headline that you hear is how the US dollar is going to disappear. And my experience has been anytime you hear that, you’re getting close to the end. The Japanese yen is a little bit different, mainly due to the fact that the Bank of Japan is stuck with loose policy. Quite frankly, when you have a situation where people aren’t willing to step in and buy your bonds, that’s not a good look.

AUD/USD Technical Analysis

The Australian dollar initially fell, but it looks like it’s going to actually hold the 0.6550 level finally. This is an area that had been a little bit of a problem for some time. So, this is actually a really good sign for the Aussie. At this point in time, I suspect we will try to get to the 0.6650 level, but it’s probably going to be a grind just like the previous 200 pips. This is not a market that has anywhere to be anytime soon. It’s just gradually drifting higher, mainly, I suspect, because of US dollar weakness and not really anything to do with Australia itself. So, with this, I think you just have a grind, perhaps for another 100 pips before it’s all said and done.

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