Over the past few months, the rates have repeatedly tested the support line. The US dollar looked stronger, receiving support from good macroeconomic indicators and due to speculation on the issue of interest rate growth. Also, the unstable geopolitical situation in October left no chance for the Australian dollar, with its status as a risk indicator. Will demand for risky assets increase in November? Will AUD have a chance in the next few weeks? Let's find out in this review.
This week, the Australian dollar was expected to remain under pressure following the release of a disappointing Chinese business activity report, with the index coming in at just 49.5 pips, falling short of forecasts. Australia's trade surplus fell to its lowest level for 2.5 years. As a result, the USD had every chance of growing, but something went wrong.
As it became known this week, Fed Chairman Jerome Powell considers the rate too high, and this means that the rally can actually officially be called complete. As you know, monetary policy is very important for the value of the USD: high borrowing costs increase the income of lenders and the return on investment in the currency.
Volatility will remain high next week. The focus is on the Bank of Australia meeting, the publication of the trade balance in China and inflation. We believe that quotes are in the stage of price correction, so it is reasonable to open the deals to Buy, amid a weakening USD during a period when the Fed is taking a long pause.
