AUD/USD: towards new annual lows for the Australian dollar

Crises in China and Asia put pressure on the Australian dollar

The Aussie could break through its currently tested support at $0.6670 and set new yearly lows in the coming weeks. The risks are on the downside for the Australian dollar as its main partner, China, faces a major crisis in the housing market and is again penalized by localized confinements.

Furthermore, the Asian continent is increasingly at risk since the sharp depreciation of the region’s currencies amplifies the surge in energy prices and therefore increases the risk of recession and social tensions in these countries.

Basically, the Australian dollar is also penalized by the slowdown in the global economy, which is likely to worsen in the coming months with massive monetary tightening by central banks. As the Australian economy is export-oriented, like China and Germany, it is therefore much more sensitive to the health of the global economy.

The greenback attracts all liquidity in this very uncertain economic and geopolitical context in Europe and Asia and should continue to be coveted as long as there is no real improvement in the economic / energy situation in Europe and / or in China.

AUD/USD weekly price chart – key levels

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