The rates continue within a downtrend. The demand for risk and commodity assets remains strong despite signs of a slowdown in China's economy. In particular, China's GDP growth in the fourth quarter was below the forecasts, amounting to only +2.6% instead of the expected 3.2%.
Over the past seven days, traders who prefer short deals have had to face a price correction, with a corresponding drawdown. However, the rates quickly returned to decline, despite the growth of the ZEW index of economic sentiment in Germany. The euro was again under pressure due to deflation in consumer prices, as well as new tighter quarantine restrictions in Germany and the Netherlands. Investors also expect new stimulus from the ECB, which also puts pressure on the euro.
The Australian dollar, in turn, remains under the beneficial influence of the Chinese economy and strengthening amid the high demand for risky assets. This week is one of the key ones for the AUD, as the unemployment data is coming out and according to the forecasts, the unemployment rate should have fallen by 0.1% in December.
Most technical analysis tools indicate the efficiency of deals on the trend. We also consider investing in the Australian dollar to be more efficient than investing in the euro, which remains negatively impacted by the pandemic.
