In mid-Asian session this morning (11/1), AUD / USD bounces after slumping to a four-month lows last week. However, the pair still bearish sentiment tinged with respect to concerns about the Asian markets and commodity prices.
AUD / USD closed dipped to 0.6951 on Friday, its lowest level since September 2015, following the collapse of the Chinese stock market, Wall Street and in Australia. ASX200 index fell 2 percent, the lowest since July 2013 in a series of events in a bad week for the stock market of the world. However, the pair has now returned.
Currently, the pair AUD / USD was trading around 0.3 percent higher than the previous low level, approaching the 0.6980 range.
However, in the middle of a quiet weekend fundamental release, sentiment towards the Aussie damped by the rise of concerns over China's economic slowdown which has triggered a new selloff in the equity markets and commodities. In the coming days, developments in China and commodity markets will be observed by market participants prior to the release of Australian employment data on Thursday.
Could Decline Further
HSBC Australia chief economist Paul Bloxham said on ABC Australian media that the Australian dollar could fall further in 2016 due to the weakness of the country's main export commodity. Moreover, the condition of China and rising US interest rates will continue to shake the financial markets this year.
According to Bloxham, "The Australian dollar (today) is located at a level higher than what is implied from the relationship with commodity prices, commodity price levels now imply that the Australian dollar at 60-65 US cents (USD0.60-0.65) could be more ideal. If the Australian dollar does not degenerate further, then this could make the RBA disappointed and forced them to cut (rates) again. "
AUD / USD closed dipped to 0.6951 on Friday, its lowest level since September 2015, following the collapse of the Chinese stock market, Wall Street and in Australia. ASX200 index fell 2 percent, the lowest since July 2013 in a series of events in a bad week for the stock market of the world. However, the pair has now returned.
Currently, the pair AUD / USD was trading around 0.3 percent higher than the previous low level, approaching the 0.6980 range.
However, in the middle of a quiet weekend fundamental release, sentiment towards the Aussie damped by the rise of concerns over China's economic slowdown which has triggered a new selloff in the equity markets and commodities. In the coming days, developments in China and commodity markets will be observed by market participants prior to the release of Australian employment data on Thursday.
Could Decline Further
HSBC Australia chief economist Paul Bloxham said on ABC Australian media that the Australian dollar could fall further in 2016 due to the weakness of the country's main export commodity. Moreover, the condition of China and rising US interest rates will continue to shake the financial markets this year.
According to Bloxham, "The Australian dollar (today) is located at a level higher than what is implied from the relationship with commodity prices, commodity price levels now imply that the Australian dollar at 60-65 US cents (USD0.60-0.65) could be more ideal. If the Australian dollar does not degenerate further, then this could make the RBA disappointed and forced them to cut (rates) again. "
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