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Aussie could continue to underperform following

  • Leader
    Nov 16
    The Aussie underperformed against the majority of the leading
    currencies during Monday's trading session. The AUD/USD dropped lower
    from 0.7235 to 0.7205, down by 0.4%, after the Reserve Bank of
    Australia's (RBA) deputy governor Guy Debelle commented that a weaker
    Aussie might be good for the Australian economy.To get more news about WikiFX, you can visit wikifx official website.

      Debelle mentioned that the board is currently watching the
    developments in the forex market. Although an intervention might not be
    effective, a lower AUD exchange rate might be beneficial to the
    Australian economy, he added. The crash in the AUD/USD pair in recent
    weeks comes after the pair had rallied by over 1,700 pips over the past
    six months.
      The Aussie might continue to underperform against the
    Greenback after the US Dollar went higher across board on Monday as the
    number of Coronavirus cases increase in Europe and Australia. If the
    risk-aversion continues, then the AUD/USD pair will likely drop lower
    during the day.

    At the moment, AUD/USD is trading below the 20-day moving average and
    could close the day below the 20-day moving average of 0.7196. A
    breakdown of this critical technical barrier will increase the
    possibility of changing the medium-term trend of the pair from bullish
    to bearish.

      Analysts and market participants will be eagerly awaiting the
    commentary from Fed Chair Powell due later this week as it might slow
    down the Greenback with talks of more monetary intervention from the
    Fed. If that happens, then the Aussie might get a breather, and the
    AUD/USD pair might perform better. However, if the upcoming release of
    global PMI data disappoints, then traders would reignite risk-aversion,
    and that could see the AUD/USD plunge lower.
      The AUD recorded
    losses against other leading currencies. The AUD/JPY pair plummeted from
    75.73 to 75.45, following the negative comments from Debelle amid
    Tuesday's Asian session. The pair suffered its most significant loss in
    two weeks on Monday as the global markets praised the risk-aversion
    wave. AUD/JPY sharply fell from 76.221 to 75.609 on Monday, and at the
    current rate, it could likely drop further over the coming hours.

      Traders are rushing to the Yen at the moment due to the increasing
    talks regarding the national lockdowns in the UK and Europe backed by
    the recent rise in Covid-19 cases in the region. Furthermore, the
    US-China tension is another catalyst that could be negatively affecting
    the Aussie as China is the largest customer of Australia. The US
    Secretary of State, Mike Pompeo, recently thanked France, Germany, and
    the UK for their joint effort in rejecting China's claims in the South
    China Sea at the United Nations (UN). While the event intensifies the
    rivalry between the US and China, China losing the claims indirectly
    affects Australia and the Aussie.

    The AUD/JPY pair is in a bearish trend as it is currently trading below
    the 100-day moving average. Further risk aversion in the market could
    see the pair drop lower and likely approach the 200-day moving average
    of 72.9. Following the recent market performance, the pair's 50-day SMA
    is at its lowest since August 03, while bearish MACD signals for AUD/JPY
    indicate further downside. The Aussie could really do with any good
    news at the moment to help it shake off the bearish trends.

      [About The Author]

      Hassan is an expert writer and analyst on the financial markets, with
    expertise in cryptocurrencies, forex, stocks, and CFDs. With more than
    four years of experience, Hassan is a popular writer in fundamental
    analysis, trading guides, and news contents.

      He has worked for various forex, stock, and cryptocurrency blogs
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    as a financial markets and cryptocurrency writer.