On Thursday (January 2nd) during the European trading session, the AUD/USD in the current foreign exchange market rebounded slightly, but still faces the risk of falling below key support levels; The USD/CAD is driven by the strength of the US dollar and interest rate differentials, with a significant upward trend and an opportunity for a pullback; GBP/USD is suppressed by the US dollar, and although it is temporarily fluctuating within a certain range, there is still a risk of falling below the support level, indicating the overall strong position of the US dollar. The following is an analysis of these three currency pairs.

AUD/USD: Life is hanging by a thread, weakness is evident

The Australian dollar rebounded on Thursday. During the previous Tuesday trading session, the Australian dollar significantly fell, breaking below the key level of 0.62 for the first time, and its situation was precarious. If it continues to decline, the future situation is unpredictable and there is a risk of falling to the psychological level of 0.60, as the US dollar is currently overwhelmingly strong against most currencies. Even if the Australian dollar rebounds, given the overall weakness, it only provides a new opportunity for short selling. 0.6350 is a strong resistance above, with no hope of breaking through at present, while the 0.60 integer level may have some support due to psychological and option factors. However, overall, there is no reason to buy AUD/USD at present. If you want to invest, choosing AUD/USD against other currencies is more wise.

USD/CAD: Strong USD, under pressure CAD

On New Year's Eve, the US dollar rebounded slightly, marking a good start to the new year. Given the advantage of US interest rates and the difficulties faced by the Canadian government, the strong position of the US dollar against the Canadian dollar and most currencies is stable, and the interest rate differential will continue to boost the US dollar's upward trend. The current Canadian market is chaotic, and the US dollar/Canadian dollar is expected to hit the high of 1.45. A short-term pullback to around 1.42 is actually a potential buying point, as this level has played a supporting role multiple times and the 50 day EMA will also provide assistance. As long as it breaks above 1.45, the next target will be 1.4750. However, due to the wait-and-see attitude of most traders recently, the market may fluctuate sideways before the release of non farm payroll data, but the strong foundation of the US dollar remains unchanged.

GBP/USD: Range stuck, downward concerns lurking

On Tuesday, although the pound attempted to rebound, it quickly fell back, and the current market trading is light, making it difficult to break through the existing range. However, as the employment data for January 10th approaches, the market may fall below the key support of 1.25 in the future. Despite occasional slight corrections in the US dollar, the overall strength remains strong. At the current stage of 1.2750 or above the ceiling, it is more appropriate to short GBP/USD. If it falls below 1.2450, it may fall to 1.23 or even 1.21 in the future. At the same time, high interest rates in the United States have led to the long-term high operation of the US dollar. Although the performance of the pound relative to other currencies is still acceptable, it is essentially a global dominance of the US dollar, rather than a problem with the pound itself.