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AUD/USD Fluctuated Around 0.6877 Last Week, But Ended With Losses.

AUD/USD Fluctuated Around 0.6877 Last Week, But Ended With Losses.
AUD/USD Fluctuated Around 0.6877 Last Week, But Ended With Losses.
AUD/USD Fluctuated Around 0.6877 Last Week But Ended With Losses

Overview of AUD/USD Exchange Rate Previous Weeks Exchange Rate Movement Last Week’s Exchange Rate Movement Reasons for Losses in the Last Week Possible Future Scenarios Alternatives to Investing in AUD/USD

The AUD/USD currency pair saw a mixed performance last week, as it fluctuated around the 0.6877 level. However, the week ended with losses, as the pair closed at 0.6854, down by 0.15%.

The week started on a positive note, as the pair climbed to a high of 0.6929 on Monday, supported by better-than-expected Australian retail sales data. However, the gains were short-lived, as the pair faced selling pressure later in the week, amid concerns over the ongoing coronavirus outbreak.

On Tuesday, the Reserve Bank of Australia (RBA) held its monthly policy meeting and decided to keep its benchmark interest rate unchanged at 0.75%, as expected. The central bank also maintained its economic growth forecasts for the country but warned that the bushfires and coronavirus outbreak could impact the economy.

The pair continued to face selling pressure on Wednesday, as investors remained cautious due to the rising death toll from the coronavirus outbreak. The virus has infected over 40,000 people and killed over 1,000, mainly in China.

On Thursday, the pair received some support from a stronger-than-expected Australian employment report, which showed that the country added 13,500 jobs in January, well above the expected gain of 10,000 jobs. However, the gains were limited, as investors remained focused on the coronavirus outbreak.

AUD/USD

The pair closed the week on a negative note, as it fell to a low of 0.6832 on Friday, amid a broad risk-off sentiment in the markets. The concerns over the economic impact of the coronavirus outbreak continued to weigh on investors’ sentiment, as more countries reported cases of the virus.

Looking ahead, the AUD/USD pair is likely to remain volatile in the coming days, as investors continue to monitor the developments related to the coronavirus outbreak. In addition, the release of key economic data, such as the Australian GDP and Chinese trade balance, could also impact the pair’s performance. Traders and investors should remain vigilant and cautious, as the pair is likely to face significant swings in the near term.

How the Global Pandemic is Shaking the Forex Markets

The coronavirus outbreak has been a major concern for investors, as it has disrupted supply chains, forced companies to shut down factories, and led to travel restrictions in China and other parts of the world. The virus has also led to a sharp decline in oil prices, as investors expect lower demand from China, which is the world’s largest oil importer.

The RBA has also warned that the bushfires and the coronavirus outbreak could impact the country’s economic growth in the near term. The central bank expects the economy to grow by 2.75% in 2020 but has noted that the risks to the growth outlook have increased due to recent events.

Meanwhile, the US dollar has remained strong against most major currencies, supported by a robust US economy and a hawkish Federal Reserve. The US economy added 225,000 jobs in January, beating expectations, while the unemployment rate remained at a historic low of 3.6%. The Federal Reserve has also signaled that it is unlikely to cut interest rates anytime soon, which has boosted the US dollar.

The AUD/USD pair is also impacted by the ongoing trade tensions between the US and China. Although the two countries signed a phase one trade deal last month, there are still concerns over unresolved issues, such as intellectual property theft and forced technology transfers. Any escalation in the trade tensions could lead to a sell-off in the Australian dollar, as the country is heavily reliant on exports to China.

In terms of technical analysis, the AUD/USD pair is currently trading below its 20-day moving average, which suggests a bearish trend in the short term. The pair has also formed a descending triangle pattern, which indicates a potential bearish breakout. However, traders and investors should be cautious, as the market sentiment can quickly shift in response to any unexpected news or events.

In conclusion, the AUD/USD pair saw a mixed performance last week, as it fluctuated around the 0.6877 level before ending with losses. The pair is likely to remain volatile in the near term, as investors continue to monitor the developments related to the coronavirus outbreak and the US-China trade tensions. Traders and investors should remain vigilant and cautious, and closely monitor the key economic data and news announcements that could impact the pair’s performance.

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