Australian Greenback Speaking Factors:Australian Dollar weak point has come again as one of many clearer 2020 FX traits. AUD/USD
Australian Greenback Speaking Factors:
- Australian Dollar weak point has come again as one of many clearer 2020 FX traits.
- AUD/USD is now nearing an enormous batch of help across the .6700 deal with.
- Aussie CPI is due later this week, and subsequent week brings the RBA. Will they reduce?
Aussie Slammed to Contemporary 2020 Lows; CPI, RBA Coming Up
The Australian Greenback got here into the New Yr clinging to a really seen bullish development. Whereas the forex had a quite tough first 9 months of final 12 months, AUD/USD set a low simply after the This autumn open and worth motion continued to push-higher thereafter, setting a recent five-month-high on the ultimate buying and selling day of 2019. That marked a 50% retracement of the prior sell-off that began in December of 2018 and spanned to that recent 10-year-low set on October 2nd; and given a backdrop of weak point within the US Dollar, it appeared as if a deeper bullish transfer may maintain as longer-term brief positions have been additional squeezed out of the market.
That didn’t occur; as a substitute, the RBA opened the door to charge reduce prospects shortly after the New Yr open, and sellers got here again into AUD/USD, with aggression, to push costs again right into a down-trend. That sell-off has been ongoing ever since and now AUD/USD is testing a recent three-month-low.
AUD/USD 4-Hour Value Chart
Chart ready by James Stanley; AUDUSD on Tradingview