According to Sean Callow, Research Analyst at Westpac, there was cause for optimism over the Australian dollar early this week as China’s return from a week-long holiday meant a resumption of benchmark iron ore prices.
“Less helpful though for AUD/USD’s attempt to rally from 32 month lows near 0.70 was the poor sentiment in Chinese equities. This was a background concern for AUD but equity weakness was much harder to ignore when US markets posted their largest losses since February.”
“With specs already short, AUD/USD at least has the fuel for a rally if global conditions improve near term. If not however, there is little in the way of the 0.69 handle, especially with AUD potentially still suffering a little from domestic political uncertainty ahead of the 20 October byelection that could produce a minority government.”
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 securities. 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 Forex 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.