Don’t waste your time – keep track of how NFP affects the US dollar!

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Follow us on Facebook

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

FBS Mobile Personal Area

FREE - In Google Play

View
AUD: going pre-crisis

AUD: going pre-crisis

Information is not investment advice

Technical

This week, the AUD has been one of the strongest currencies on the Forex market. Currently, it is at pre-crisis levels against the JPY and the USD. Trading this high, it is testing the long-term downtrends at 0.7000 for the AUD/USD and 76.00 for the AUD/JPY. The question is, even if it does break it, what are the odds that it keeps going upwards?

1.png

Fundamental

The main driver for the advance of the AUD is the good management of the virus in Australia, which had minimal direct impact compared to other countries. After that, there is a timing factor: tied to China, the Australian economy was the first one to start the recovery while the rest of the world is still shrugging off the dust of devastation. As the Chinese economy is strong and quick to get back to full capacity, the AUD has that as guaranteed support for the upside. However, such a scenario when the AUD is winning over the rest of the world will not stay long: once other economies, primarily the US, are back to capacity, the balance will get back to pre-crisis status quo where the AUD is a weak link. That means, several months ahead, possibly until the US election is finished, the AUD may enjoy the weakness of the USD. But in the long-term, closer to the very end of 2020, the USD will reassert itself as the Forex central pillar, and the fundamentals will be settled down. Then the AUD will again be under pressure.

                                                                                                 LOG IN

Similar

Popular

NFP Number Will Drive Markets

US stocks are set to open lower Friday, with investors worry over rising tensions between the US and China, deadlock over the next virus relief bill and possible disappointments from the key monthly employment report.

Choose your payment system

Learn more