The Australian Reserve Bank (RBA) gave the strongest hints that there is a possibility to lower interest rates to 0.10% in order to stimulate the economy.
The AUD / USD pair remained depressed during the early European session. It was last seen moving near the lower end of the daily trading range, around the 0.7075-70 region. And finds current support there for now.
Growing market concerns about the sharp rise in new coronavirus cases, could lead to new lock-in restrictions and hamper the global economic recovery. The Australian dollar is sensitive to key Chinese issues. The September consumer price index only put things in order for the Aussie, which is struggling.
Inflation in China continues to slow and fell to 1.7%, a sharp drop from the previous edition of 2.4%. There is more pressure on the Australian dollar than on the US dollar. Market participants are now looking forward to US monthly retail data for a new boost. The US economic document on Friday also contains data on industrial production and a preliminary estimate of the October consumer sentiment index in Michigan. The data, together with the broader mood of market risk, will affect the dynamics of dollar prices. Additionally, it may create some short-term trading opportunities.
Below our waiting MA 200 around 0.68000, whether it will attract a pair of AUD / USD we will see in the coming period, smaller pullback expect maximum up to the trend line and resistance 0.72000.
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