AUD ON THE ROPES AS RISK AVERSION FUELS EUR/AUD, GBP/AUD BREAKOUTS
AUD ON THE ROPES AS RISK AVERSION FUELS EUR/AUD, GBP/AUD BREAKOUTS
The Australian Dollar (AUD) experienced significant volatility recently, influenced by new trade tariffs and growing recession concerns.
This environment has led to notable movements in currency pairs such as EUR/AUD and GBP/AUD.
Impact of New U.S. Tariffs:
U.S. President Donald Trump introduced a 10% "reciprocal tariff" on imports from various countries, including Australia.
Australian stocks opened sharply lower, erasing $50 billion to $60 billion in value.
Australian Dollar Under Pressure.
Currency Movement: The AUD weakened against major currencies, with the AUD/USD pair trading near 0.6300, reflecting market risk aversion.
Analysts warn that the new tariffs could lead to a global recession, further pressuring the AUD.
Breakouts in EUR/AUD and GBP/AUD:
EUR/AUD: The pair has seen bullish momentum, breaking above technical resistance levels, driven by risk aversion and the AUD's weakness.
GBP/AUD has surged, nearing pandemic-era highs, as investors seek safer assets amid economic uncertainties.
The release of U.S. nonfarm payrolls data is anticipated to influence risk sentiment and could impact currency movements, including AUD-related pairs.
