logo |

News

    Home   >     Industry    >     Main body

    AUD Is Weak Under All-rounded Pressure

    Abstract:A rise in the wake of a fall was seen by DXY last week ascribed to the uncertain time of delisting caused by the Federal Reserve (Fed). However, the reason for the rally of DXY last Friday is the vigorous growth of personal consumption expenditures (PCE) released by the U.S. Bureau of Economic Analysis (BEA).
    Lark20210803-143533.jpg

      A rise in the wake of a fall was seen by DXY last week ascribed to the uncertain time of delisting caused by the Federal Reserve (Fed). However, the reason for the rally of DXY last Friday is the vigorous growth of personal consumption expenditures (PCE) released by the U.S. Bureau of Economic Analysis (BEA). In addition to this, the Fed should start to slow down its bond purchases by U.S. $120 billion this autumn, according to James Bullard, the president and CEO of the Federal Reserve Bank of St. Louis who has the right to vote. In his opinion, the Fed should “go fairly rapidly” in tapering the purchases. “I would have a target of finishing (quantitative easing, QE) by the end of the first quarter next year (of 2022),” added by Bullard. He also indicated that the way should be paved for interest-rate hikes to be carried out in 2022. His extremely hawkish speeches have boosted the performance of DXY to the greatest extent.

      The financial market will concentrate on the unemployment rate and the non-farm payrolls (NFP) announced by the Bureau of Labor Statistics (BLS) this week. Optimistic expectations on these two statistics at present have led forex traders to insistence on the purchase of USD as a major trading tactic this week. Most of them regarded AUD as the main sale amid the previous week or so, a situation resulting from nothing but the weakest fundamental factors of AUD compared to its non-U.S. counterparts.

    00ca8580c67f24702c2d0a609ae2eed6.jpg

      Fundamental factors in question include the escalating COVID-19 worldwide, the turmoil in the stock markets of Mainland China and Hong Kong, and the slightly sluggish economic recovery nationwide. In this case, traders focus on selling AUD. Apart from the AUD/USD pair, they also conduct AUD/JPY crosses as JPY has become a safe heaven currency on the volatile stock market in Asia. In addition, AUD/NZD crosses have also been carried out because the monetary policies of New Zealand have been tightened.

      As for the three currency pairs above-mentioned, the profitability of AUD/NZD crosses is the highest. The AUD/JPY pair will be a lucrative trading tactic if the Asian stock market is continuously turbulent in the short run. Speaking of the AUD/USD pair, transactions can be fully operated when the monetary policies made by the Fed are totally hawkish.

    02.jpg

    Latest News

    South African Rand

    • United Arab Emirates Dirham
    • Australia Dollar
    • Canadian Dollar
    • Swiss Franc
    • Chinese Yuan
    • Danish Krone
    • Euro
    • British Pound
    • Hong Kong Dollar
    • Hungarian Forint
    • Japanese Yen
    • South Korean Won
    • Mexican Peso
    • Malaysian Ringgit
    • Norwegian Krone
    • New Zealand Dollar
    • Polish Zloty
    • Russian Ruble
    • Saudi Arabian Riyal
    • Swedish Krona
    • Singapore Dollar
    • Thai Baht
    • Turkish Lira
    • United States Dollar
    • South African Rand

    United States Dollar

    • United Arab Emirates Dirham
    • Australia Dollar
    • Canadian Dollar
    • Swiss Franc
    • Chinese Yuan
    • Danish Krone
    • Euro
    • British Pound
    • Hong Kong Dollar
    • Hungarian Forint
    • Japanese Yen
    • South Korean Won
    • Mexican Peso
    • Malaysian Ringgit
    • Norwegian Krone
    • New Zealand Dollar
    • Polish Zloty
    • Russian Ruble
    • Saudi Arabian Riyal
    • Swedish Krona
    • Singapore Dollar
    • Thai Baht
    • Turkish Lira
    • United States Dollar
    • South African Rand
    Current Rate  :
    --
    Amount
    South African Rand
    Available
    -- United States Dollar
    Risk Warning

    The Database of WikiFX comes from the official regulatory authorities , such as the FCA, ASIC, etc. The published content is also based on fairness, objectivity and fact. WikiFX doesn't ask for PR fees, advertising fees, ranking fees, data cleaning fees and other illogical fees. WikiFX will do its utmost to maintain the consistency and synchronization of database with authoritative data sources such as regulatory authorities, but does not guarantee the data to be up to date consistently.

    Given the complexity of forex industry, some brokers are issued legal licenses by cheating regulation institutes. If the data published by WikiFX are not in accordance with the fact, please click 'Complaints 'and 'Correction' to inform us. We will check immediately and release the results.

    Foreign exchange, precious metals and over-the-counter (OTC) contracts are leveraged products, which have high risks and may lead to losses of your investment principal. Please invest rationally.

    Special Note, the content of the Wikifx site is for information purposes only and should not be construed as investment advice. The Forex broker is chosen by the client. The client understands and takes into account all risks arising with Forex trading is not relevant with WikiFX, the client should bear full responsibility for their consequences.