Gold’s rally may be limited
XAU/USD is edging higher, but may meet soon the strong resistance. What is the forecast?
Rabobank forecast: AUD will fall further
Information is not investment advice
The aussie is expected to plummet for the next six months. What is the reason?
What happened?
AUD/USD has been dipping for 5 days in a row. That hasn’t happened since the coronavirus outbreak at the beginning of March. "We see scope for AUD/USD to pullback," claimed analysts from Rabobank. The Australian dollar has been rising for almost half a year, driven by the optimistic prospects on recovery and the steady rebound in Chinese economic activity.
However, investors’ enthusiasm has waned these days as new virus cases have started rising again and therefore the recovery will take more time than initially expected. Moreover, there are loads more factors except a risk-off sentiment that also weigh on the overall sentiment, undermining riskier currencies like the aussie. Among them are the uncertainty over the US presidential elections in November, the impasse of the US fiscal stimulus, and, of course, US-China tensions.
Elsewhere, the Reserve Bank of Australia is interested in depreciation of the national currency to boost exports. The RBA also mentioned that lower rates would "definitely be beneficial for the Australian economy". Those prospects by themselves have already pushed the aussie to the downside. Traders eagerly await the RBA statement on October 6 for more clarity.
Technical tips
AUD/USD has been plummeting since Friday. It has even broken down the six-month uptrend and also the significant support of 0.7150. Therefore, the way towards the next support of 0.7000 at the 100-day moving average is clear. If it manages to cross it, the pair may drop to the next support of 0.6920, which it failed to break in early July. Resistance levels are 0.7150 and 0.7200.
Kseniya Medik
Similar
EUR/USD skyrocketed ahead of ECB’s speech
The euro has started the week on a positive footing, surging to the key resistance of 1.1800.
USD/JPY: trading the red channel
USD/JPY is climbing higher. Will it continue? Check the article.
Popular
USD/JPY: on the way to September lows
USD/JPY is plunging. It may go even lower than where came down to in September. Read the article to set your levels.
EUR/USD Trades at One-Month high as Dollar Keeps Weaker
European stock markets are seen opening higher Wednesday, helped by increased confidence for a new U.S. stimulus package to boost the world’s largest economy. The White House and Democrats in the U.S.
EUR/USD higher but stalling ahead of the October highs
Wall Street's main indexes opened higher on Tuesday as investors were hopeful of more stimulus from Washington
Choose your payment system
