Recently, AUD/USD traded to a fresh monthly low of 0.7128 with sharp gains in the US dollar and a
decline in global stocks. The exchange rate may test the August low of
0.7076 as the Reserve Bank of Australia (RBA) was determined to provide
additional policy stimulus.To get more news about WikiFX, you can visit wikifx official website.
The RBA warned that “under the central scenario, it would be more than
three years before sufficient progress was being made towards full
employment to be confident that inflation will be sustainably within the
target band.” The RBA will take further steps to support the economy,
which includes expanding the yield target program, intervening in forex
markets, and launching a negative interest rate policy. A further shift
in risk sentiment may keep the exchange rate under pressure.
The IG Client Sentiment Report shows the number of net-long and net-short
AUD/USD traders is 2.93% and 12.48% lower from last week, respectively.
But the selloff of AUD/USD looks poised to persist as retail traders
have been net-short the pair since April. The exchange rate appears to
be on track to test the August low of 0.7076, considering the losses in
the exchange rate deepened from earlier this week.
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