CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Disclaimer

Our systems have detected that you are using a computer with an IP address located in the USA. If you are currently not located in the USA, please click “Continue” in order to access our Website.

Local restrictions - provision of cross-border services

Swissquote Ltd is authorised and regulated in the UK by the Financial Conduct Authority (FCA). Swissquote Ltd is not authorised by any US authority (such as the CFTC or SEC) neither is it authorised to disseminate offering and solicitation materials for offshore sales of securities and investment services, to make financial promotion or conduct investment or banking activity in the USA whatsoever.

This website may however contain information about services and products that may be considered by US authorities as an invitation or inducement to engage in investment activity having an effect in the USA.

By clicking “Continue”, you confirm that you have read and understood this legal information and that you access the website on your own initiative and without any solicitation from Swissquote Ltd.

If cookies are currently disabled on your computer, you will be required to continue accepting this legal information for every new page visited on this website. In order to avoid this, please enable cookies on your computer.

Research Market strategy
by Swissquote Analysts
Daily Market Brief

AUD limited short-term trend reversal

1

AUD limited short-term trend reversal

By Vincent Mivelaz

The upsurge of AUD despite expectations from the Reserve Bank of Australia to maintain a wait-and-see approach at today’s monetary policy meeting after a series of three rate cuts appears quite surprising, especially considering last week trading session where the Aussie could barely benefit from positive comments from the US and China on the outcome of an interim phase one deal. Meanwhile, the latest announcements by the US administration to impose tariffs on steel and aluminum from Argentina and Brazil under the ground of a massive and voluntary devaluation of the currency, probably to force both countries to reduce or halt exports of agricultural products (e.g. soybean) to China, followed by threats of punitive duties on French imports, do not bode well for commodity currencies.

Now that the hands are starting to unbind with the prospect of a potential agreement with Beijing potentially frozen until after 2020 US elections as Chinese authorities exert growing retaliation threats after saying it will publish a list of unreliable US companies that should face sanctions, Washington appears willing to target its key trading partners, and particularly Europe. The statement by the US Trade Representative Office that it could implement $2.4 billion in tariffs on French consumer products after it adopted a digital services tax on July 24, 2019, when similar measures could be taken against Austria, Italy and Turkey, may well tarnish the current optimistic view that global economic growth should stabilize in 2020. Bearing in mind that the escalation of trade tensions between the two Atlantic neighbors may well include sanctions against the EU car industry, the Reserve Bank of Australia may well be forced to revise its projections downwards, as it seems to lack arguments for not cutting rates deeper so far.

 
Live chat