The Australian Dollar now has the dubious honour of being the worst-performing G10 currency so far this month, in the leadup to its federal elections on May 18.
After testing the 0.72 resistance level mid-April, the downward momentum for AUDUSD has gathered pace going into the current month, as the re-intensification of US-China trade tensions, coupled with the recent negative data in the domestic jobs market, have ramped up expectations for a rate cut by the Reserve Bank of Australia. Since enduring a massive leg down on April 24, AUDUSD has fallen further away from the 0.70 psychological level. As headwinds grow stronger surrounding the currency pair, a meaningful break below 0.68 may even open a path towards the 0.65 level.
AUDJPY testing 76 support level
Amid the risk aversion that has permeated the markets last week, demand for safe haven assets have surged, prompting AUDJPY to test the 76 support level. The bearish channel appears firmly entrenched for the time being, as another bout of risk-off sentiment may see the currency pair opening a path towards the 75 psychological mark and below.
EURAUD to register new 2019 high?
EURAUD is well on its way back towards its year-to-date high of 1.635, which came before the flash crash that took place on Jan 3. Even against the dismal Eurozone outlook, the Australian Dollar hasn’t been able to hold its own ground against the bloc’s currency. Should this bullish momentum take the currency pair past the 1.63 handle, a new high for the year then shouldn’t come as a surprise for traders.
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