News

Australian Dollar slides quietly

14/08/2018

While most of the markets were focused on the woes of the Turkish Lira (USDTRY) yesterday, and worrying about the possible contagion issues with those most exposed to Turkish risk (Spain, since you ask), one would have expected safe-haven investments such as Swiss Francs (CHF) & Gold (XAUUSD) to have benefited. Interestingly though, this didn’t happen. We saw some US Dollar strength in general, but the most interesting story was the Aussie Dollar (AUDUSD). This has now fallen to its lowest level in 18 months, closing at 0.7297, just 8 months after reaching its high for the same period at 0.8134, a drop of slightly over 10 per cent. On the face of it, there doesn’t appear to be much in the way of support until it gets to the 0.7190/00 level and then it’s anybody’s guess. Ten years ago it had a brief flirtation with 60 cents but came off that pretty sharply. We wouldn’t expect it to re-test those levels and there will be natural buyers on dips, but overall we’d prefer to sell rallies than buy dips. One of the things to remember with AUDUSD is that despite being a Major currency, albeit one very much in the Second XI, is that it is not as liquid as one might expect, particularly during the European & NY markets. Keep your stops updated as there may be fireworks ahead.

Share this news

Related posts

Economic 2019-07-31_FOMC.png

Countdown to FOMC on 31st of July

31/07/2019

Market expects 0.25% rate cut on 31st of July 2019

Read more
Calendar Calendar.jpg (1)

The week ahead 15.07.2019

15/07/2019

Upcoming releases next week

Read more
Stock Market US stock-exchange.jpg

Stock market rally

10/07/2019

Stock market rally after Powell transcript

Read more
Forex News yen.jpg

Dollar Yen breaks lower

24/05/2019

Dollar Yen breaks lower

Read more