The AUDUSD pair broke higher during the course of the session on Monday, but pullback a little bit.

However, we believe that ultimately this market will go higher as the gold (GLD, quote)  markets look like they are trying to find some type of support in that general area as we continue to see a lot of concerns about the Federal Reserve stepping away from interest-rate hikes.

This generally is good for gold, and that tends to have a bit of a “knock on effect” in the Australian dollar.

There seems to be massive support all the way down to the 0.74 level, so we have no interest in selling.

Editor’s Note: Equity investors/traders can use the Currency Shares Australian Dollar Trust (FXA, quote) ETF to take positions in the Aussie dollar without a FOREX account.  The ETF looks to track the price of the Aussie dollar (AUDUSD), minus ETF fee. The fund seeks to reflect the price of the Aussie dollar (AUDUSD) with the shares representing a cost-effective investment relative to investing in the FOREX market.

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