Listen to the latest market mood for the AUDUSD pair.
The risk tone is currently negative as Asian equity markets trade broadly lower on the day. The Nikkei is down -2.84% and the Hang Seng -4.00% on the re-emergence of the Us-China trade war. The Dollar Index has risen as US President Trump issues a tariff warning to China and the US administration points the finger at China for the origin of the coronavirus outbreak.
The AUD is falling this morning. As a high beta currency we can expect the AUD to lose value in line with the risk tone tilting off. As long as equity markets remain pressured then we can expect further AUD selling.
- Therefore, expect AUDUSD selling today at market and at pullbacks.
- We expect this trade to play out over the next session before the close of the US Session.
The main risk to this outlook:
- Any positive news on COVID19 in relation to treatment/cure.
- Any stepping down of the Us-China trade war rhetoric.