possible war to hurt Australian dollar

Open demo account
FOREX trading implies serious risk and can result in the loss of your invested capital

Financial and commodity markets analytics

The Australian dollar plunged in overnight trading before recovering most of the loses after an unexpected military strike against Syria from the US.

 

At 9.17am(GMT) the Aussie dollar was trading at US75.27c  after hitting a low of US75.10c

 

In what caught the market as a complete surprise, US president Donald Trump ordered a missile strike on military bases in Syria in response to a chemical attack which killed many civilians.

 

Trump immediately blamed Syrian president Bashar Al Assad for the murderous move and threatened further action if required.

 

"The markets weren't ready for the dinner to be wrapped up quickly so the missiles could be fired," noted Westpac senior currency strategist Sean Callow

"The swing in Trump's rhetoric about Syria wasn't expected either." He added.

The possible confrontation between the US and Syria may see further pressure on the Aussie dollar as most investors are predicted to move into the greenback and safe haven investments, such as gold and move out of riskier currencies such as the Aussie.

Another test for the local currency will be the release of the non-farm payrolls figure and unemployment rate from the US where analysts have predicted a solid round of figures.

If predictions turn out to be true expectations will grow for a rate hike from the US Federal Reserve this month which will only add more woes to the Australian dollar.

The material published in on this page is produced by the FIBO group companies, and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

Fibo Markets

FIBO Markets Ltd. (ex. FIBO Group Holdings Ltd.) is authorized and regulated by the CySEC (licence no. 118/10) and operates in accordance with the Markets in Financial Instruments Directive (MiFID) of the European Union.

Unfortunately, our services are not available to individuals residing in Canada, the United States of America, North Korea, Iran, Iraq, Israel, Australia, Belgium, or Japan.

29 Agias Zonis, 1st Floor, 3027, Limassol, Cyprus

© 1998—2023 FIBO Markets Ltd. (ex. FIBO Group Holdings Ltd.)

IMPORTANT: Please be informed, that our services are available for Professional Clients only. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Please note that our services are provided only to the residents of the following counties (in alphabetical order): Austria, Bulgaria, British Virgin Islands, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Kazakhstan, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Oman, People's Republic of China, Poland, Portugal, Romania, Russia, Slovakia,Slovenia, Spain, Sweden, Ukraine, United Arab Emirates.

Please feel free to contact out Support in order to get further assistance.