Why did AUD fluctuate in 2022?

In 2022, there was a fluctuation in the price of AUD, with ongoing global crises affecting the market significantly. The RBA said that Australia had a floating exchange rate, “meaning the movements in the Australian dollar exchange rate are determined by the demand for, and supply of, Australian dollars in the foreign exchange market”.

What is the future of AUD/USD?

AUD/USD’s future depends on the monetary policies of the Reserve Bank of Australia and the Federal Reserve. ● The Fed's hawkishness may change in the second half of 2023. ● Factors like China’s reopening, commodity prices, global recession, and war in Ukraine will be the major drivers of the AUD/USD.

Why is the AUD/USD retracing a big resistance zone?

Factors like China’s reopening, commodity prices, global recession, and war in Ukraine will be the major drivers of the AUD/USD. The major range of the AUD/USD monthly chart is 0.7661 to 0.6170. Its 50% - 61.8% retracement zone is 0.6916 - 0.7091. Because the market is declining, this region represents a big resistance zone.

What is AUD/USD pair?

AUD/USD pair is one of the most actively traded on the currency markets, particularly given the fraught trading relationship between the US and China that has resulted in a trade war in recent years.