The uptrend continues due to the active recovery of the Chinese economy. However, in October the risks for the Australian dollar increased; a price correction began, which may well be the beginning of the trend reversal. With autumn, the pandemic has expanded rapidly and countries have been forced to impose new restrictions on people, which will inevitably affect the economy of many countries that depend on either tourism or oil prices. In any case, the next 30-40 days will be very volatile for currency pairs with the dollar due to the coronavirus and the upcoming US presidential election.
This week, commodity assets were again under attack, after on Friday it became known that Donald Trump got the coronavirus. It is not yet known how the current US President will survive the disease, being in the most risky age group, but the demand for safe assets has increased sharply and even gold has risen in price. At the same time, commodity assets were under pressure.
The Australian dollar is falling under the influence of news about the illness of Donald Trump, although this week it received support due to good reports on the Chinese economy, which is a key for Australia. Based on this, analysts believe the AUD is the most promising currency, despite weak macroeconomic reports on the Australian economy.
However, we believe that the price correction will continue in the near future and the deals to SELL will be more profitable. Technical analysis tools remain multidirectional. However, the MACD oscillator confidently indicates the effectiveness of short deals, while the Stochastic was reaching the oversold zone.
