AUDUSD Suffers a Black Friday Moment

The AUDUSD exchange rate suffered a deep sell-off on Friday as markets digested a hit to the country’s export-led economy.

AUDUSD - Daily Chart

AUDUSD – Daily Chart

AUDUSD plunged from almost 0.64 to 0.5950 on Friday and that has taken the pair through previous support from October 2022.

The Aussie dollar dropped through the 60 cent level for the first time since the pandemic as fears grow over its export-led economy.

Markets are also expecting another “Brutal” day on Monday for Aussie stocks, according to CommSec’s Ryan Felsman. Investors are bracing for a $115 billion wipeout on the Australian share market on Monday morning.

“We are expecting to see capitulation with the ASX SPI futures pointing down by 331 points or 4.3 per cent,” Mr Felsman said.

“If that does materialise, it would be the worst day since the first of May, 2020 at the height of the pandemic”.

The Australian dollar is often seen as a more liquid proxy trade for the yuan and it hit a five-year low against the greenback after China announced additional tariffs on US goods.

“This is a bit of a more hawkish reaction that he’s (Jerome Powell) focusing on the inflationary impact of tariffs. The US economy has been dealing with higher inflation, and because the US is the one doing the tariffs and it will apply to all imports, it’s likely to have more impact on the US,” said Peter Vassallo, FX manager at BNP Paribas.

“The inflationary concerns are real, and this makes sense as we think about the fact that inflation, for five years now, has been running above target”.

The bearish mood in the Aussie economy may be a good opportunity for traders to sell rallies in the short-term until there is some negotiation with the US leadership on tariffs.

Recent News
Start Trading Now !
Try our demo account for free to learn trading. When you’re ready, switch to a live account and start trading for real.
Popular posts
ATFX

Account Registration Unavailable

Please note that you may be accessing this page from outside Australia. For retail and professional inquiries regarding AT Global Markets (Australia) Pty Ltd, kindly reach out to us at [email protected].

ATFX

🌍 Welcome to ATFX!

To provide you with the best trading experience in Iraq, please visit our localized website:

There, you’ll find all products, services, and contact information tailored specifically for you. Thank you for choosing ATFX!

ATFX

Restrictions on Use

Products and Services on https://www.atfx.com/en-au/ are not suitable in your country. The information provided should not be considered as an offer, solicitation, or distribution for any investments.

Choose another region to see content specific to your location.

ATFX

Restrictions on Use

Products and Services on this website are not available for Hong Kong investors and not related to any corporation licensed by the Securities and Futures Commission in Hong Kong.

All the information and materials posted on this website should not be regarded as or constitute a distribution, an offer, solicitation to buy or sell any investments.

使用限制:本網站的產品及服務不適用於香港投資者及與任何香港證監會持牌公司無關。

網站內部的信息和素材不應被視為分銷,要約,買入或賣出任何投資產品。

ATFX

Restrictions on Use

AT Global Markets (UK) Limited does not offer trading services to retail clients.
If you are a professional client, please visit https://www.atfxconnect.com/