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The Australian dollar stands no chance against the US dollar in the foreign exchange market. The AUDUSP pair as alarmingly fell to its lowest levels in more than a decade and is currently trading at in early 2009 ranges. But unfortunately for the Aussie, things aren’t expected to end there as the pair is projected to extend even further and touch its support levels by the first half of March. Perhaps the sensitivity of the Australian dollar to the Chinese economy has caused it to weaken to this level. Add the damages it acquired from the bushfires that started at the beginning of the year and the sentiment gets worse for the Australian dollar. However, the ride downwards to its support levels isn’t to be easy as the US dollar starts the week with fresh bruises from the major contractions recorded by the US economy last Friday – which are the Markit composite PMI, manufacturing PMI, services PMI, and existing home sales reports.
Despite the Japanese yen slowly losing its safe-haven appeal, the Australian dollar remains on the defensive against it. The contraction in Australia’s employment change and the rise in the country’s unemployment rate has pushed the pair even lower in sessions. The pair is widely expected to drop down to its support levels by the first few days of March as bears remain focused on pushing the pair even lower. The manufacturing PMI and services PMI in Australia recorded mixed results according to official reports released on Friday, with the manufacturing PMI rising and the services PMI falling. One of the main factors that affect the AUDJPY’s ruin is the ongoing fight of the Chinese economy on the deadly COVID-19 virus that has killed thousands of people already. It’s worth mentioning that there’s not much happening with the Australian economy this week, and only a few significant reports are scheduled.
The Australian dollar has made progress against the New Zealand dollar and has successfully recovered some of its losses against it. Bulls are looking to push the pair even higher in sessions and possibly hit its resistance by the first few days of March. However, bears are not having it and are raising their efforts to prevent the AUDNZD pair from rapidly rallying in the foreign exchange market. Despite the Australian economy heavily disappointing investors, policymakers, and experts in recent reports, the Australian dollar to New Zealand dollar manages to avoid losing its gains in sessions. Investors are hoping that the pair will continue to hold on to that momentum and help the Australian dollar maintain its confidence in sessions. Just last week, the Australian economy recorded two different results from the manufacturing and services PMIs – the manufacturing PMI rose, and the services PMI fell according to official data.
Signs are obviously not pointing in favor of the Australian dollar in its matchup against the Canadian dollar. The AUDCAD pair is widely believed to reach its resistance by the first few days of March despite efforts of the Australian dollar to prevent the pair from plummeting. The risk and concerns of investors about the massive impact of the coronavirus to the Chinese economy. The Canadian loonie is also looking to drag the Aussie to its ranges last seen more than a decade ago or in 2009. Despite the Canadian dollar also weakening, the question and situation of the pair is a matter of who is weaker and who has the strength left to overpower its competitor. Canada’s retail sales were left unchanged in the month of December as showed by the official data presented by Statistics Canada last week. The weak growth seen on the Canadian economy in last week’s reports is helping slow down the AUDCAD pair’s downward run.