Listen to the latest market mood for the AUDUSD pair.
Asian equity markets traded down overnight due to the large fall in oil prices due to an anticipation of a drop in demand, declining levels of storage, and Tuesday’s contract settlement which has left a number of novice oil traders caught in con tango. May’s oil contract actually hit negative -$40 yesterday. This meant that oil went negative for the first time in it’s history.
Going into the European session, if equity markets remain pressured, expect USD strength on safe haven flows.
Expect AUD weakness due to a 6% decline in Australian jobs for the period from March 14-April 4. Also, if equity markets remain pressured then expect AUD weakness due to its commodity currency status.
- Therefore, expect AUDUSD sellers at market and on any moves back towards 0.63500 and targets at 0.6200.
- We expect this outlook to play out over the next 2-3 days.
- The main risk to this outlook remains to be any positive coronavirus news which would send the market back into a risk on mood and weaken USD and strengthen AUD.