Breaking News
0

Aussie Woes to Continue

By Jonathan KibblerForexFeb 12, 2019 12:58
au.investing.com/analysis/aussie-woes-to-continue-200199656
Aussie Woes to Continue
By Jonathan Kibbler   |  Feb 12, 2019 12:58
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Originally published by Blueberry Markets

Recently the RBA has announced a hold on interest rates whilst they monitor the risk of the current housing crisis. Housing prices have continued to fall with some reports suggesting a further 5 percent decline before the end of 2019.

A study showed that over 450,000 homes in Australia are falling into negative equity, that is almost 10% of the country owing more even upon the sale of their property.

The RBA also warned that they are keeping a close eye on employment figures, as an increase in unemployment could force them to cut interest rates.

Not only is the Australian economy looking weak, but the Chinese economy is also showing slowdown and with important trade talks between the US and China coming Thursday and Friday, the RBA will be hoping for some positive news here. You can see any slowdown in the Chinese economy overspills into the Australian Dollar causing a further downturn.

AUD/USD
AUD/USD

Last week the AUD/USD market closed significantly bearish after re-testing a key trendline resistance. We can see the 0.7050 still offers a good demand zone for the currency pair but with the data continuing to be bearish a break and close below the key zone will bring in fresh sellers.

Taking a closer look at the daily chart we can see we need to close below this key demand zone before looking for further downside here. A break will see prices head towards the 0.6800 targets, and lows of the previous ‘flash crash’.

AUD/USD
AUD/USD

Aussie Woes to Continue
 
Aussie Woes to Continue

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email