AUD/USD has wild ride during the session on Wednesday

The Australian dollar initially fell during trading on Wednesday but found enough support near the 0.7650 level to turn around and rally significantly, reaching towards the 0.77 level. That’s an area that has been important more than once, and I believe it will continue to attract a lot of attention. However, if we can break above the 0.7720 level, the market should then go to the 0.78 handle. If we pull back from here, I anticipate seeing quite a bit of support underneath as well, especially near the 0.7650 level. The market should continue to be very choppy in general, because we have a lot of moving pieces out there that could affect risk appetite.

Beyond all of that, we also have the Nonfarm Payroll Numbers coming out on Monday, which of course moves the markets rather drastically. I think between now and then it will be very difficult to pick up a major amount of momentum to send this market in one direction or the other. I think that it’s only a matter of time before we get some type of decision made though, so ultimately, we should continue to see choppiness between now and then. Once we get the announcement on Friday, I think that will give us an idea as to where interest rates will continue to go, and of course will have its effect on gold which also influences the Australian dollar. It looks very likely that the market will try to rally from here, as we have a major uptrend line underneath near the 0.76 level, which goes back to late 2015. It is because of this, that I think pullbacks are buying opportunities.