Australian dollar rallies to start the Wednesday session

The Australian dollar rallied during trading on Wednesday, breaking well above the 0.75 handle at one point, but now as I record this video it looks likely to turn right back around. I think we will continue to see the 0.75 level act as an area of extreme interest in this market, and therefore I think we will see more consolidation. On the hourly chart, it does look a bit explosive, but at the end of the day the move was only about 30 pips.

I believe the trading back and forth with perhaps more of a downward proclivity is probably how this is going to play out, as the treasury markets are starting to show signs of higher interest rates in the United States. Those higher interest rates will drive the greenback higher overall, which will put a weight on pricing of gold, one of the major factors for the Australian dollar. I believe that we will eventually fall again, perhaps trying to make a fresh, new low. However, I would not get married to any particular position, because the one thing that I think I will anticipate more than anything else is a lot of noise. With that in mind, small positions in adding if it goes in your favor is probably about as good as this gets. Longer-term, I think the 0.7350 level makes sense, but we have a long way to go before we get there.