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The Australian dollar to US dollar exchange rate is trading at its lowest levels for more than a decade as the Aussie remains vulnerable due to the problems faced by the Chinese economy. Bulls are having an extra tough time pulling the pair higher despite the greenback also seen weakening in sessions. Bears are widely expected to bring the pair lower to its support levels and push the Australian dollar further. However, as of writing, the Aussie is seen defending itself against the US dollar and is being backed by the string of positive data recorded from the Australian economy. The fourth quarter business inventories from Australia reportedly rose to 0.3% from -0.2%, easily topping projections of -0.1%. However, it’s doubted whether the Australian dollar could actually recover some of its major losses against the US dollar immediately. Considering that there are also negative results from the Australian economy such as the company gross operating profits report.
The week is starting off in a bearish tone for the AUDCAD pair as the Canadian dollar continues to drag the Aussie downwards in sessions. The pair is now seen trading at its lowest levels since the early 2010s, however, bears are determined to pull it even lower and reach levels last seen in 2009. The jump in the Canadian economy’s monthly gross domestic product helped the Canadian dollar outrun the Australian dollar in sessions, weighing heavier than some improvements recorded by the Australian economy. If bears keep hold on the momentum, the pair is bound to reach its support levels by the middle half of March. Just last week, it was reported that the December monthly gross domestic product of Canada grew to 0.3% from 0.1%, crushing expectations of stagnant results. Later this week, the Bank of Canada is expected to deliver its interest rate decision which is widely expected to remain unmoved at 1.75% for the third month of 2020.
As the number of coronavirus cases continues to spread across the globe, the Swiss franc rises stronger and stronger in sessions. The AUDCHF is seen tumbling down in sessions due to the exposure of the Australian dollar to the risks faced by the Chinese economy and the strengthening Swiss franc. It’s believed that the pair will reach its resistance by the halfway mark of the month, pushing the AUDCHF pair to its lowest levels in sessions. The improvements in Switzerland’s economy is also helping the pair decline, making it even harder for the Australian dollar to regain its composure against the Swiss franc. Reports of more COVID-19 cases in the United States, Middle East, Europe, and other Asian countries such as South Korea is fueling the gas tanks of AUDCHF bears in sessions. The massive impact on the global economy of the deadly virus is feared by investors and is causing the demand for the franc to surge.
The Australian dollar is seen recovering against the Japanese yen as of the moment, however, the momentum of bulls isn’t expected to last long as the AUDJPY pair is believed to head downhill in coming sessions. Investors are waiting for further support later this Monday as the Reserve Bank of Australia is scheduled to give its interest rate decision for the third month of the year. Experts project that the RBA will leave its interest rates unmoved at 0.75% despite the turbulence faced by the country’s economy and its biggest market, China. Despite that, things are expected to turn around after Wall Street and the whole stock market felt its worst shock since 2008 last week. The massive impact of the severe virus is felt in great magnitude by the market, raising the appeal of the Japanese yen all across the foreign exchange scene, causing investors to scramble to get a piece of the safe-haven currency.