The Australian dollar slipped to a three-week low this morning as the RBA looks set to enhance monetary easing. Current consensus is that the additional stimulus is likely to be announced during the RBA’s Nov. 3 policy meeting. Specifically, the central bank is expected to cut the interest rate to a new record low of 0.1% from the current 0.25% and possibly boost bond purchases in the five to 10-year window.

Chart

As a major risk currency, the AUD tends to follow global stock markets trends and is generally seen as a leading indicator of risk appetite. A generally weak USD has helped the AUD higher recently but we see a major trend reversal today.

With growing uncertainty in the Covid-19 pandemic, the strength in the USD might return and we hence sold this pair at 0.7034 with SL at 0.7135 and TP at 0.6835.

Risk Warning: CFDs are complex instruments and come with a high risk of losing your invested capital due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

The content of this material and/or any information provided by BDSwiss Group should not be in any way construed, either explicitly or implicitly, directly or indirectly, as investment advice, recommendation or suggestion of an investment strategy with respect to a financial instrument and it is not intended to provide a sufficient basis on which to make investment decisions, in any manner whatsoever. Any information, views or opinions presented in this material have been obtained or derived from sources believed by the BDSwiss Research Department to be reliable, but BDSwiss makes no representation as to their accuracy or completeness. BDSwiss Group accepts no liability for losses arising from the use of this data and information. The data and information contained herein are for background purposes only and do not purport to be full or complete.

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