AUD/USD extends losses to test one-week lows at 0.6400

  • AUD/USD reversal from 0.6560 extends to test one-week lows at 0.6400.
  • Australian dollar falters with against a firmer USD on a risk-averse market.
  • Aussie's near-term target is 0.6000 – Danske Bank.

The Australian dollar has extended its reversal from 0.6560 highs on Monday, to test one-week lows at 0.6400. The Aussie has been hammered by risk aversion on the back of growing tensions between the US and China is set for a 1.5% depreciation this week.


The Aussie hurt by risk aversion and the US-China tensions

AUD/USD has declined in four of the last five days, undermined by the negative market mood. Investors' hopes of a quick economic recovery after the COVID-19 have been dampened by concerns about a second wave of the pandemic, with infection numbers growing in the countries that started lifting restrictions.

Beyond that, the escalating tensions between US and China, and the bleak macroeconomic data on the aftermath of the coronavirus lockdowns have weighed market sentiment further, increasing selling pressure on the Aussie, with the USD favoured by its safe-haven status.

AUD/USD short-term forecast is 0.6000 – Danske Bank

The  FX analysts’ team at Danske Bank see the Aussie dropping to 0.6000 to consolidate in the next three months, “We keep our short-term forecast at 0.60, which remains below the current spot level (…) We generally think AUD is getting somewhat ahead of where fundamentals anchor the spot and thus expect some consolidation on 1M and 3M.”

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD slides under 1.16 as US Retail Sales smash estimates

EUR/USD is trading under 1.16 after US Retail Sales smashed estimates with 0.7% in September. Treasury yields are rising. The risk-on mood continues to underpin the pair, as the ECB policymaker Wunsch dismisses inflation concerns. 


GBP/USD retreats below 1.3750 after US data

GBP/USD has pared some of its gains after US Retail Sales beat estimates, with the core group hitting 0.8% last month. Earlier, investors shrugged off dovish comments from two BOE members. 


XAU/USD slumps to $1,770 area on upbeat US data, surging US bond yields

Gold started the last day of the week on the back foot and extended its slide to a fresh daily low of $1,770 in the early trading hours of the American session pressured by the dollar's resilience and surging US Treasury bond yields.

Gold News

Crypto bulls on winning streak pushing for more

Bitcoin price favors bulls reaching $60,000 by the end of this week and onwards to new all-time highs by the end of next week. Ethereum price broke a bearish top line and could hit new all-time highs by next week in tandem with Bitcoin. 

Read more

Why is Tesla going up?

Tesla's (TSLA) stock price has finally pushed higher in a series of steady and sure moves. We had nearly given up on our bullish call with Tesla stock as it kept struggling around the $800 level.

Read more