AUD/USD Pair Dips 0.45% in Markets, COVID Panic Grips

Nigel Frith
US 100 Dollar Bill with Franklin wearing a face mask

The US dollar continued a week of surges in lots of its key pairs after the coronavirus pandemic placed itself firmly back on the agenda.

The dollar index, which is a tool used by traders to compare the greenback’s performance to several others from around the world, showed a spike of 0.1% to reach its best position in two months.

It was seen at 94.50 at one stage and has risen by almost two percentage points over the course of this tumultuous week alone.  Previous hopes that the world economy might be about to recover from the coronavirus pandemic’s impact now appear to be dwindling.  In a now-common paradox, the US dollar benefited despite the fact that domestic data in the country was negative.

Commercial activity rates in the country were shown to be down in September.  The outlook from Federal Reserve central bankers during a speech earlier in the week was also pessimistic – with one suggestion that unemployment risks in the country are now deeply bedded in.  However, the dollar’s positive performance was also boosted in part by news from Europe, where the pandemic appears to be causing problems once again.  When calculated including the European Economic Area and the UK, cases in Europe have now surpassed the 3m mark.

Spain is the worst hit, with 693,556 deaths as of yesterday.  The risky currencies, which in the post-pandemic phase experienced something of a boom, continued their negative week.  The Australian dollar was one key loser, dipping in the markets by just over half a percentage point.  It reached $0.7042 at one stage.  This put it close to its worst position since the middle of July.  Sterling experienced a day of twists and turns in the markets.  Despite an earlier move from rises to falls and back again, the currency managed to stabilise at a relatively higher point following an announcement from the government.  Rishi Sunak, the Chancellor of the Exchequer (a post equivalent to finance minister), said that the government would pay some of the wages of employees across the country.

He also announced measures designed to help firms that are struggling with cash flow.  Turning to the economic calendar, it appears that the US will be back in the spotlight with several economic data releases over the course of Friday.

Durable goods orders for August will be out at 12:30 pm GMT and are due to show a big drop – from 11.4%, where they were last recorded, to 1.5%.  A metric looking at non-defence capital goods orders for August will also be out during this time slot.  This measure will exclude aircraft and looks set to go down from 1.9% to just half a percentage point.  These gloomy forecasts, then, are likely to do nothing to help the causes of the traders of risky currencies.

Nigel Frith

Latest news

Keep Trading the Technicals to Take Advantage of a Quiet News Week
The absence of any significant diarised news announcements this week was highlighted on Monday in Trading Strategies to Suit The Week of 18th October. Read more
Trading Strategies to Suit The Week of 18th October
With minimal news events diarised for the week beginning the 18th of October, it looks like fans of technical analysis might be best positioned to test their strategies in the next few days. Read more

Safest Forest Brokers 2020

Broker Info Best In Customer Satisfaction Score
#1 ForexTime LogoYour capital is at risk Founded: 2011 Global CFD & FX Broker
Number One Broker
#2 BlackBull Markets LogoYour capital is at risk Founded: 2014 Global Forex Broker
Number One Broker
BEST SPREADS Visit broker
#3 Your capital is at risk Founded: 2014 Global Forex & CFD Broker
Number One Broker
Best Trading Conditions Visit broker
#4 Forex Broker eToro Logo67% of CFD traders lose Founded: 2006 Global CFD & FX Broker
Number One Broker
#5 Forex Broker Pepperstone LogoCFDs and FX are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Founded: 2010 Global Forex Broker
Number One Broker
Low minimum deposit Visit broker

    Forex Fraud Certified Brokers

    IC Markets Logo
    FXTM Logo Logo
    IQ Option Logo
    HYCM Logo
    OctaFX Logo
    skilling logo
    Vantage FX logo
    LegacyFX Small Logo
    XM Logo
    Exness Small Logo
    Plus500 Small Logo
    ATFX Logo
    investous logo
    City Index Logo
    AvaTrade logo
    Pepperstone Logo