AUD/USD to test 0.6965 support amid pressured equity markets – Westpac


The aussie has fallen for five days in a row to just above 70 cents, its lowest levels since late July. USD momentum and related equity slide should keep the pressure on the AUD/USD pair, along with the RBA’s dovish tone. The 0.6965 mark is the next major support, economists at Westpac report.

More – AUD/USD: Downside corrective, targets the 200-DMA at 0.6773 – Commerzbank

Key quotes

“We can’t ignore the role of the US dollar, with the Bloomberg Dollar Index around two-month highs. With US$ up again all G10 FX over the week, it is not unusual to see AUD underperform, especially as global equities tumble.” 

“There are A$-specific sources of pressure. RBA’s Debelle was quite downbeat and reiterated options for further easing, causing forecasters including Westpac to pencil in a cut to 0.1% in Oct or Nov.”

“Benchmark iron ore has dropped $15 from the 14 Sep high and gold has tumbled but coking coal and copper are holding up. Australia will continue printing trade surpluses but the USD and risk mood are key for the aussie near-term.” 

“It is hard to draw a line under AUD/USD in the current market mood, so we switch to down on the week, with scope for 0.6965 then the 0.6900 area, though there is no obvious support around there.”

 

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD drops below 1.1850 amid growing covid concerns

EUR/USD has dropped under 1.1850 as European coronavirus cases hit records. France exceeded 50K daily cases and Spain announced a state of emergency. US fiscal stimulus talks remain stuck ahead of the elections. 

EUR/USD News

GBP/USD pressured towards 1.3000 amid downbeat market mood

GBP/USD has been extending its losing streak amid a surge in COVID-19 cases in the UK and elsewhere. Investors are shrugging off reports of progress in Brexit talks. 

GBP/USD News

XAU/USD recovers early lost ground to seven-day lows, back above $1900 mark

Gold reversed an early dip to the $1891 region, or seven-day lows and refreshed daily tops during the mid-European session, albeit lacked any strong follow-through.

Gold News

Bitcoin vs gold: Safe haven battle

A new idea has been floating around in Safe Haven Trading. Well, it’s not entirely new, but it’s quite controversial to say the least. For the longest time, gold has been considered to be the purest form of safe haven trading. 

Read more

WTI tumbles to fresh lows near $38.00 on demand, supply concerns

Prices of the barrel of the American benchmark for the sweet light crude oil trade on the defensive at the beginning of the week around the $38.50/40 band.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures