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- AUD/USD decreases towards the 0.6050 region during the American session on Friday, which represents a sharp diving inside the day.
- Trump’s aggressive scope raises concerns about slow global growth and inflation; The President of the Federal Reserve Powell warns of the broader economic impact.
- Technical indicators flashing strong downsic momentum. The resistance was seen near 0.6200 while the husband tests its lowest levels in the years.
AUD/USD pair The bottom of the main psychological support collapsed during the American session on Friday, slipping towards the area of 0.6050 and distinguishing its lowest level in five years. The sharp decline comes in our aftermath is stronger than the numbers Non -agricultural salary statements (NFP) report, which added to a wider increase in Greenback. However, the dominant catalyst behind the Australian collapse stems from a new wave of US definitions announced by President Donald Trump, which raised the fears of global growth and caused speculation that the Australian Reserve Bank (RBA) may respond with a series of discounts in aggressive prices this year. Technically, the pair flashes with an intense declining momentum, as RSI is now well in the sale area and Macd fresh red strip.
Daily Digest Market Movers: Trump Drifs and RBA Bets Crush Aussie
- The Australian dollar (AUD) faced a brutal sale, as it decreased to less than 0.6050 regions, as investors re -postpone the RBA rate rates quickly in response to a new tariff package from Trump.
- The Federal Reserve Chairman (Fed) Powell, speaking at an event for the commercial press, acknowledged that the volume of tariff campaign may have a more stable impact on inflation and growth than expected at first.
- Powell emphasized the flexibility of the Federal Reserve, noting that although inflation gradually cools, the economic impact of definitions is still largely incredible, which leads to the waiting and vision position.
- Despite the powerful report of US jobs in March, with salaries winning predictions and a slightly raised unemployment rate, Powell highlighted the deterioration of the work morale associated with commercial policy.
- The markets now expect that RBA will offer successive price discounts in the next few meetings, where some banks expect that 50 basis points move in May.
- The Chinese retaliatory position increases the pressure on the Australian, as the economy that Australia is still deeply linked to Chinese demand.
- The US dollar is widely advanced after NFP Print and Powell comments, which strengthens more high beta currencies like AUD.
Technical analysis
On Friday, the massacre leaves AUD/USD in the depth of descending lands, with the collapse of price movement near the lower end of its daily scope and the violation of large multi -year support areas. The different moving average rapprochement (MACD) continues to print new red bars, which enhances negative momentum, while the RSI has decreased to the 27th region, confirming the extreme excessive conditions.
Although the stochastic oscillator seems neutral, the ongoing sales process has been more valid through the power/Taurus power index tanning red and sharp divergence across the moving averages. All the intermediate averages are short and long-term-EMA averages for 10 days, 20 days, 100 days, and 200 simple days-leakage to the prevailing direction.
Questions and answers in Australian dollars
One of the most important factors for the Australian dollar (AUD) is the level of interest rates set by the Australian Reserve Bank (RBA). Since Australia is a resource -rich country, the other main engine is the largest export price, iron ore. The health of the Chinese economy, the largest commercial partner, is a factor, as well as inflation in Australia, the rate of growth and commercial balance. Market morale-whether investors are eating more risky assets (risk) or searching for safe materials (risk)-is also a worker, with positive risks for AUD.
The Australian Reserve Bank (RBA) affects the Australian dollar (AUD) by determining the level of interest rates that Australian banks can persuade each other. This affects the level of interest rates in the economy as a whole. The main goal of RBA is to maintain a stable inflation rate of 2-3 % by setting interest rates up or down. Relatively high interest rates are supported compared to other main central banks, and relatively low vice versa. RBA can also use and tighten quantitative dilution to influence credit conditions, with previous AUD negative and positive to AUD.
China is the largest commercial partner in Australia, so the health of the Chinese economy is a major impact on the value of the Australian dollar (AUD). When the Chinese economy does a good job, it buys more raw materials, commodities and services from Australia, raising the demand for AUD, and raising its value. The opposite is the case when the Chinese economy does not grow at the speed available. Positive or negative surprises in Chinese growth data, therefore, they often have a direct impact on the Australian dollar and its wives.
Iron Ore is the largest export in Australia, as it represents 118 billion dollars annually according to data from 2021, with China as its main destination. Therefore, the price of iron ore can be an engine for the Australian dollar. In general, if the price of iron ore rises, the AUD also rises, as the total demand for the currency increases. The opposite is the case if the price of iron ore decreases. Iron ore prices also tend to increase the possibility of a positive commercial balance for Australia, which is also positive for AUD.
The commercial balance, which is the difference between what a country earns from its exports in exchange for what it pays for its imports is another factor that can affect the value of the Australian dollar. If Australia produces very required after exports, its currency will obtain a value of the excess demand created from foreign buyers who seek to buy its exports in exchange for what it spends on buying imports. Therefore, the positive net trade balance enhances AUD, with the opposite effect if the trade balance is negative.
