Good day forex traders and koalas.
Welcome to another forecast of the AUD/USD currency pair. In the previous week we noted an unexpected dip due to the report that the Australia budget would likely not produce a surplus. The markets took this development with apprehension and the Aussie dollar was sold.
Looking at the AUD/USD chart above we noted that the currency pair fell further towards a previous support region. The price action consolidated towards the end of the week probably due to low volume. As we are still in the midst of the year end period, be careful of unexpected price action.
The drop of confidence towards the Australian dollar was significant as seen in the charts. Progress wiped out in a manner of days. As we head to the new year, continued positive developments would be needed to place the AUD/USD back on the bullish track. Any positivity from the Euro Zone will likely to be beneficial. Keep an eye on the Australian equity index.