The Aussie pair closed in the red for a third consecutive day yesterday but bounced back in the morning and currently trading at around 0.7270.
The pair has hit an intraday low of 0.7219 a fresh September low, weakened by significant losses in global equities. Asian indexes ended the day mixed, but European and American ones plunged, with the Dow Jones losing over 800 points. The decline was caused by worries about global economic progress following news that one of the biggest Chinese property companies may fall into default on a $305 billion financial liability.
The good performance of gold during the American session afternoon put a temporal halt to the pair’s decline, although further declines are still likely. The attention now moves to the Reserve Bank of Australia Meeting Minutes.
RBA has maintained its decision of reducing its weekly bond buying from $5 billion to $4 billion but delay the end of the whole package until at least February, due to the latest Delta coronavirus outbreak that keeps most of the country under restrictive measures.
Warning:
Trading on CFDs involves a high level of risk, including full loss of your trading funds. Before proceeding to trade, you must understand all risks involved and acknowledge your trading limits, bearing in mind the level of awareness in the financial markets, trading experience, economic capabilities and other aspects.
Disclaimer:
Market Trends, Charts, Trading Ideas or other information provided by BKFX (Pty) Ltd and/or third parties are not intended as an investment advice and/or recommendation. The information provided is not presented as suitable or based on your specific need. You are responsible for your own investment decisions and you should not trade with money you cannot afford to lose. Any views or opinions presented in this Article are solely those of the author and do not necessarily represent those of the Company, unless otherwise specifically stated. The Company may provide the general commentary which is not intended as an investment advice and must not be construed as such. Seek advice from a separate financial advisor if an investment advice is needed. The Company assumes no liability for errors, inaccuracies or omissions, inaccuracies or incompleteness of information, texts, graphics, links or other items contained within this article/material.