The Australian dollar is under pressure today on the back of weaker commodity prices, following on from last Friday’s pullback after the currency made a run for US82c
Iron ore, Australia’s biggest commodity slumped 3 percent on Friday with some analysts predicting that it may have reached a peak.
The savior of the Australian dollar against the greenback may be hurricane Irma which is pounding the coast of Florida and is likely to keep the US dollar under pressure.
From a technical point of view the Aussie dollar is looking vulnerable after last Friday’s rejection at the US81.22c level and a further pullback below US80c is possible.
While fundamentals contributed to the Aussie’s late slide, Greg McKenna, chief market strategist at AxiTrader, says the Aussie is looking vulnerable from a technical and positioning perspective.
“The pin bar on the daily charts looks awful from a technical perspective,” said Greg McKenna, chief market strategist at AxiTrader
“It’s probably too early to call a top just yet given US dollar weakness, but with speculative accounts still very long there is room for a decent pullback toward 80 cents, then 0.7960, within an overall trend higher.” he added.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72% of retail investor accounts lose money when trading CFDs with this broker. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72% of retail investor accounts lose money when trading CFDs with this broker. Before deciding to trade foreign exchange you should consider whether you understand how CFDs work, your investment objectives, your level of experience and readiness of taking risk. The possibility exists that you could sustain a loss of some or of all of your initial investments and therefore you should not risk more than you are prepared to lose. Please seek independent financial advice if necessary.
|By clicking "Continue" you will be redirected to the website operated by FIBO Group, LTD company registered in BVI and regulated by FSC. Please familiarize yourself with the Customer Agreement through the link. Click "Cancel" to remain on this page.|