AUDUSD: ACCEPTANCE
Hello Investors!!
The Aussie Dollar continues to move entirely on global sentiment, new lockdowns in China or continued strong USD could unwind the gains last week.
AUDUSD market participants will be looking for more signs of increased hawkishness by Lowe and the RBA minutes and could be a negative. RBA Governor speaks on Monday and Tuesday and RBA minutes are released on Monday. Last week , Governor Philip Lowe stated that Australians should prepare for a cash rate of 2.5% later this year to tame inflation. With Six meetings left in 2022, to get the cash rate from 0.85%, a 50bps if not more would be needed to meet expectations.
China is also Australia’s biggest trading partner so any slowdown would hurt the AUD dramatically. Powell is due to testify before Congress in hearing in Wednesday and Thursday and is expected to retreated the Feds commitment to curbing inflation, which is the highest in 40 years.
Many investors have never had to operate within a tightening economy and a significant number have been spoiled by QE when lower or even study rates ultimately turned into what seemed like an unending dip buying opportunity. Month-to-date the pair is down 3.3 percent. Having noted the primary trend is bearish.
The Australian Dollar was the third weakest currency last Friday while USD is recovering some ground with commodity prices falling . The outbreak of war unleashed turmoil on commodity markets and continued to do so in certain areas of the energy sector. Overall prices are relatively stable at levels above where they were before the war. This has boosted Australia’s trade balance with AUD 10 billion is added to the nations bottom line each month. Many commodities that Russia and Ukraine , Australia does also.
This is an article not Financial advice
If you have any questions please leave a comment and I will answer them
And please support this idea with your likes and comment.
The Aussie Dollar continues to move entirely on global sentiment, new lockdowns in China or continued strong USD could unwind the gains last week.
AUDUSD market participants will be looking for more signs of increased hawkishness by Lowe and the RBA minutes and could be a negative. RBA Governor speaks on Monday and Tuesday and RBA minutes are released on Monday. Last week , Governor Philip Lowe stated that Australians should prepare for a cash rate of 2.5% later this year to tame inflation. With Six meetings left in 2022, to get the cash rate from 0.85%, a 50bps if not more would be needed to meet expectations.
China is also Australia’s biggest trading partner so any slowdown would hurt the AUD dramatically. Powell is due to testify before Congress in hearing in Wednesday and Thursday and is expected to retreated the Feds commitment to curbing inflation, which is the highest in 40 years.
Many investors have never had to operate within a tightening economy and a significant number have been spoiled by QE when lower or even study rates ultimately turned into what seemed like an unending dip buying opportunity. Month-to-date the pair is down 3.3 percent. Having noted the primary trend is bearish.
The Australian Dollar was the third weakest currency last Friday while USD is recovering some ground with commodity prices falling . The outbreak of war unleashed turmoil on commodity markets and continued to do so in certain areas of the energy sector. Overall prices are relatively stable at levels above where they were before the war. This has boosted Australia’s trade balance with AUD 10 billion is added to the nations bottom line each month. Many commodities that Russia and Ukraine , Australia does also.
This is an article not Financial advice
If you have any questions please leave a comment and I will answer them
And please support this idea with your likes and comment.
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