The Australian Dollar stopped. Overview for 04.03.2020
AUDUSD tried to continue its recovery but wasn’t strong enough for that.
On Wednesday morning, the Australian Dollar is trying to continue the correctional uptrend against the USD, but market players are obviously confused. The current quote for the instrument is 0.6597.
After yesterday’s information explosions, when the RBA cut the rate and then the US Federal Reserve did the same but very unexpectedly, investors were totally at sea. The USD was plunging, but it was barely seen in AUDUSD. By the start of today’s trading session, most market players calmed down and started analyzing what was going on.
It’s quite clear that risks of the slowdown in global economies due to “damaged” trade relations scared the world’s leading central banks. The Australian economy is very closely connected to the Chinese one? That’s why the RBA’s decision to cut the rate is quite clear. The US Fed followed the emotions because the country’s economy is stable and gives no causes for concern, at least right now.
Anyhow, rates were cut and market players would need some time to assess the economic climate and draw proper conclusions.
The statistics published by Australia in the morning showed that the country’s GDP added 0.5% q/q in the fourth quarter 2019, which is worse than in the third one (+0.6% q/q) but better than expected (+0.4% q/q).