AUD/USD At Decade Low

by Feb 10, 2020Market Reviews

AUD/USD At Decade Low

 

Following a brief recovery from its dip at the end of last month as fears concerning the coronavirus alleviated somewhat, the Australian dollar has since reached a decade low in the wake of the NFP (Non-farm payroll) release on Friday.

The AUD fell to its lowest at 0.66690 against the USD, a figure not seen since March 2009, after a decline that began 4 days earlier leading up to NFP and concluded with its release. It has since consolidated slightly, floating at around the 0.66755 mark.

The NFP release last Friday, the first of the year, massively exceeded predictions as the number of jobs increased by 225,000, far outnumbering the predicted estimate of 160,000. This figure was unexpected even as the ADP release a few days earlier, which is usually seen as a precursor to how the NFP will do, showed similarly outstanding results.

This is a very strong showing for the US economy and investors have reacted as such, leading the US dollar to rise not only against the AUD, but the CAD and NZD as well amongst other currencies.

 

Anish Lal at BlackBull Markets had this to say on the AUD/USD:

“The Australian Dollar fell nearly 3% last week amid a significant NFP beat above analyst expectations, and prior to this, very strong Private Jobs growth for Jan 2020.  Markets are weighing down on the Aussie, as it touches a decade low, with the lowest tick around the 0.6661-mark post NFP release. The chart on the left indicates price action on the day, showing a continuation of the bear trend following the news release, and on the right a monthly time frame indicating a consolidation area from 2009 sub 65 cent mark, where the price could well head, with this week’s China economic metrics in view.   The RBA are set to hold onto rates, however economic impacts from these low rates could well be only felt in the years to come, meaning it could get worse before it gets better.”

For Anish’s full analysis, watch it here on YouTube, and make sure to follow us on Instagram and Twitter at blackbull_markets and @blackbullforex, respectively.

Related Posts

A Beginner’s Guide to Social Trading

A Beginner’s Guide to Social Trading

A Beginner’s Guide to Social Trading Social trading is a low investment way to trade, making it perfect for beginner traders. Social trading is a method of trading that has rapidly gained popularity following the advent of social media and online trading. What is...

read more
Nikkei 225 Drops Amidst Fears of Japan Recession

Nikkei 225 Drops Amidst Fears of Japan Recession

The Nikkei, or Japanese Stock Market Index, is down 1.6% after a fall of 330 points, marking a fourth straight day of losses.
The most obvious factor affecting this is the continuing fears of the coronavirus, which is affected all Asian markets as the severity of the virus only worsens.

read more

Black Bull Group Limited (trading name: BlackBull Markets) is a New Zealand registered and incorporated company (company number: 5463921). We are also registered with the Financial Services Provider Register (number: FSP403326).

Black Bull Group UK Limited is registered in United Kingdom, Company Number - 9556804. Payment clearing services provided by: BlackBull Group UK Limited (Company Number - 9556804) Address - 483 Green Lanes, London, Greater London, United Kingdom, N13 48S

Risk Warning: Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange, you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and, therefore, you should not invest money you cannot afford to lose. You should make yourself aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any questions or concerns as to how a loss would affect your lifestyle.

Copyright © 2020 Black Bull Group Limited. All Rights Reserved.

Share This