AUD Crosses taking a battering

Stuart Cowell HFM

AUDUSD, AUDJPY & AUDCHF

Ironically it is antipodean currencies that are in focus during the European session, especially the Aussie Dollar. The initial downdraft came with the Huawei news, pressure continued with the miss on the trade balance. This morning we have had dovish tones from the Deputy Governor of RBA and finally comments from the OPEC meeting have pummeled Oil price down 3% as production cuts of 1.3 million barrels seem to be off the table.

Negative sentiment continues and equities markets are down across the board. AUDUSD closed on its 20- day moving average yesterday, this morning it has breached and broken both this level and the 50-day moving average and currently trades at the significant 0.7200 level. Additional, safe haven currencies received a bid yesterday with AUDJPY and AUDCHF both closing below the key 20-day moving average. The follow-through this morning has taken both crosses below 50- and 200-day moving averages, suggesting the uptrend for the Aussie Dollar is fading and may have turned. RSI has turned down significantly and MACD looks to be slowing too.

Author

Stuart Cowell

HFM

With over 25 years experience working for a host of globally recognized organisations in the City of London, Stuart Cowell is a passionate advocate of keeping things simple, doing what is probable and understanding how the news, c

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