- After all, the Australian dollar is a commodity currency and therefore it does tend to move higher when there's more risk on behavior and at the other end of the spectrum you have the Swiss Franc which of course tends to strengthen when there is a serious decrease in risk appetite.
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For what it is worth, overnight the New Zealand central bank cut interest rates by 50 basis points and that does have a bit of a knockout effect on the Australian dollar as the two tend to trade in tandem. But having said that, we did try to break out to the upside only to get turned around as we continue to struggle with the 50 day EMA. Underneath we have the 0.5750 level as a bit of a fulcrum for price that I suspect will offer a certain amount of support. If we can turn around and break above the 0.5850 level on the upside, then I think you got more FOMO trading just waiting to happen in this pair. And we probably go looking towards the 0.60 level.
Remember, this pair does tend to move right along with risk appetite, so pay attention to things such as commodity markets and stock markets, because if they start to rise, that does help this pair, at least should as risk appetite will continue to fluctuate. There are a lot of concerns about the global economy right now, and that's part of the confusion that you are seeing. If we break down below the 0.57 level, then I think you see the Swiss franc start to strengthen, not only here, but probably other places. And then you could probably see other risk assets, such as stock markets struggle a bit.
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