In our last review, we predicted a continuation of the downward trend. And so it happened. The rates have been continuing in a downward direction for 9 months and have reached the levels of 2006 - 2009, that is, for more than 10 years the Australian dollar has been stronger than it is now. Reaching unprecedented lows was made possible for the Canadian dollar due to the weakness of its opponent, good oil prices and different monetary policies. In addition, the Australian dollar as a risk indicator was losing ground due to a slowdown in the Chinese economy.
Over the past 7 days, oil has been rapidly falling amid the strengthening of the USD, as well as investor confusion about the prospects for oil demand. This was expected from the point of view of technical analysis, where a price correction had long been expected, but the fall turned out to be rapid and significant. The Canadian dollar came under pressure, which was reflected in the AUD/CAD chart in the form of consolidation.
The Australian dollar disappointed investors with the RBA's decision to leave the rate unchanged despite rising inflation, but pleased with the growth of the trade balance surplus in August. At the same time, exports increased by 4% while imports remained virtually unchanged. However, the overall background remains negative for the AUD. We could say that being at the lows encourages Buying while technical analysis tool are multidirectional.
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