There is a perfect storm of issues for the Aussie Dollar as the new week begins. The weakness of the Yuan, lower industrial commodity prices and rising US yields are all adding to the ongoing trade conflict between the US and China to cause the extended downside in Australian Dollar pairs. The start of the week shows no sign of any of those issues going away, which means the likes of AUDUSD, EURAUD and AUDJPY have all seen their fair share of big moves.
Monday’s session saw one of the worst performing days for both Australian stocks and the dollar since March, as it nothing seems to be working to relieve the pressure at the moment. AUDUSD fell down towards 0.70 before rallying during European trading hours on the back of whipsaw nature of the US dollar at the moment. The bounce from the lows will give Aussie bulls a bit of respite as it seems the 0.71 level is the anchor point for the pair at the moment, with mild resistance at 0.7090.
On the four hourly time frame EURAUD broke out of the channel that we had seen working for the last couple of months, before yet again falling back in European trading as the Aussie recovered. The key level here remains a retest of the descending trendline around 1.6200 and the mid S2 of the pivots at 1.6240.
The information provided here has been produced by third parties and does not reflect the opinion of AxiTrader. AxiTrader has reproduced the information without alteration or verification and does not represent that this material is accurate, current, or complete and it should not be relied upon as such. The Information is not to be construed as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product, or instrument; or to participate in any particular trading strategy. Readers should seek their own advice. Reproduction or redistribution of this information is not permitted
Stocks soar, powered by first-rate earnings and a dazzling run of economic data; Gold plays catch as G10 falls flat while oil basks in the afterglow