AUDUSD POTENTIAL BEARISHNESS

30 Jul 2022

Audusd took out thursdays low, but the dollar index failed to reflect same price action. Althoug price was quickly repriced back into premium, above the 50% equilibrium price, price narration is suggesting dollar strength to come. The fed recently increased interest rates to 2.5%, suggesting that the dollar will remain bid. There is a positive differntial between the interest rates of australia at 1.35%(likely to be raised to 1.85% on tuesday) and 2.5%, the higher the interest rate, the stronger a currency