AUD/USD: Set for another plunge down under
|The thrill is gone as the AUD/USD's sugar rush faded out. As COVID-19 continues spreading around the world, the risk-off sentiment is weighing on the Aussie. Yohay Elam from FXStreet analyzes the AUD/USD outlook for the next week.
Key quotes
“Updates on the disease remain left, right, and center. An increase in COVID-19 cases in Australia may weigh on the Aussie. If China returns to lockdowns, it would also be a disappointing sign.”
“The RBA's rate decision stands out on the economic calendar. Governor Phillip Lowe and his colleagues may decide to wait for more developments before expanding the program, but the fast pace of events means anything is possible.”
“The US greater fear is for a rapid rise in deaths, which may pass 10,000 in the coming days. The few holdout states are likely to impose ‘shelter in place’ orders, and others may extend their lockdown. The pace of closures may impact market sentiment.”
“Lawmakers are already mulling another fiscal package as $2.2 trillion may be insufficient to tackle the magnitude of the shutdown. If another plan is pushed forward, it may improve the mood and drive the dollar down.”
“Jobless claims remain the most significant figure due to its freshness. The number of applications is unlikely to fall below five million and may even exceed ten million.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.