Time to trade dark horses of the metals market?
What are the forecasts for silver, platinum and palladium?
AUD: jobs report pushed it down
Information is not investment advice
AUD has a pause on the way up as 600,000 people lost jobs. Is it a short-term correction or change of a course?
Devastating unemployment rise
"A very tough day, terribly shocking, although not unanticipated", - said Scott Morrison, the Australian Prime Minister. These days it’s really hard to surprise someone with a weak economic data. We already got used to it. However, it weighed some pressure on AUD, but it wasn’t the only one reason that pushed it down.
Powell’s negative prognosis
Jerome Powell, the Fed chairman, gave a quite pessimistic outlook. He claimed that there is a high risk of the future deep downturn. Most economists and even Donald Trump discussed the positive impact of negative rates on economic activity. Nevertheless, Powell was unmoved, he rejected that possibility. This negative perspective pushed USD up and AUD down. The Australian dollar is really sensitive to all the market fluctuations.
Risk-off market
Those reasons were enough for the market-sensitive AUD to fall, but the overall risk-averse and fears of the second coronavirus wave destroyed the poor aussie completely. AUD, NZD, CAD, GBP, stock indexes such as S&P 500 and Dow Jones – all together are suffering. Things can improve only when the market will switch to the risk-on sentiment.
What does the chart tell us?
The AUD/USD had been increasing since March 23 and it almost bounced back to its pre-crisis position. The price hit the 100-day moving average twice at 0.655. If it dips down to 0.633, what is quite possible, it may go even lower to the support line at 0.627 where is the 50-day moving average. Most analysts have bearish scenarios for the aussie. However, if it gains and crosses the resistance level at 0.649, it will go further up to 0.655.
Similar
USD/CAD: ahead of US jobless data and Powell’s speech
USD/CAD continues dipping. Follow US jobless claims and the speech of Fed’s Powell!
Trump, impeachment, USD
How may the USD be impacted by the impeachment process? Read and prepare.
Popular
Gold: trade the sideways move
How to trade the gold price while it's oscillating between 1 837 and 1 864? Read the article, and you'll know how!
$1.9 tln stimulus is unlikely to support the USD in long term
US President-elect Joe Biden proposed a $1.9 trillion stimulus plan to jump-start the world's largest economy and accelerate its response to COVID-19
Time to trade dark horses of the metals market?
What are the forecasts for silver, platinum and palladium?
Choose your payment system
