The AUD/USD pair fell during the session on Thursday after initially trying to rally, which of course it failed to do so. The resulting candle is a shooting star, but there is a hammer from the previous session so we do not read too much into this. In fact, we think this simply means that the pair is going to grind sideways for a while as we enter a fairly tight consolidation area. This is an acute surprise if you think about it, we are at the end of the summer and the entire world is waiting to see what the Federal Reserve is going to do about tapering, something that will have a massive effect on commodity prices, which of course has a massive effect on the Australian dollar.
Written by FX Empire