No new updates on AUD/USD quotes. The downtrend continues consecutively for the 11 months , and receives new incentives for further decline. This month's pandemic was not the only factor against risky assets, but it also raised concern about tensions happening in Eastern Europe, and obviously expectations for tightening the Fed's monetary policy.
The latest macroeconomic reports on the Australian economy have exceeded investors' expectations. In particular, how the unemployment has sharply decreased. The result is considered as the lowest indicator in 13 years, close to what the RBA would like to see to increase the rate. Nevertheless, the situation at the moment is not in favor of risky assets. Geopolitical tensions between the US and Russia are causing panic in the stock market and all risky assets, including cryptocurrencies. Extremely low business activity in the service sector in Australia added pressure on AUD today. So, currently there is no chance yet. In addition, investors still prefer USD, in anticipation of further steps by the Fed to increase the rate.
This week is a key for AUD/USD. Volatility is expected to be very high. Very soon we will find out the consumer price index in Australia and assess how far the indicator is from the RBA's target. Then. we are currently waiting for the Fed's decision on the interest rate and the US GDP in the 4th quarter, and at the end of the week - orders for durable goods in the US and consumer spending. Most indicators of technical analysis indicate the effectiveness of the deals on the trend. Our choice today corresponds to the choices of most investors - we sell risky assets and buy USD.
