We use cookies to give you the best possible experience on our website. By continuing to browse this site, you give consent for cookies to be used. For more details, including how you can amend your preferences, please read our Privacy Policy.
More Info Accept

AUD collapses on potential RBA November easing

October 22, 2020 06:10

 AUD collapses on potential RBA November easing

The Reserve Bank of Australia has paved the way for action in its November meeting after the RBA Assistant Governor, Christopher Kent, said there is a need for a supportive policy for some time to come. In its latest Monetary Policy Meeting Minutes report, the bank highlighted that the strength of the Australian dollar and the drag on the economy from Victoria's lockdown support the case for more easing.

Economists believe that this easing will take place via an interest cut from 0.25 per cent to 0.1 per cent, as well as a commitment for large scale bond purchases in additional quantitative easing measures. In a speech last week, the RBA Governor Philip Lowe signalled that interest rates would stay low for at least three years.

Did you know that you can speculate on the direction of the Australian dollar against other currencies using Contracts for Difference (CFDs)? This allows you to potentially profit from both rising and falling markets. Get started with a free demo trading account today!

The Australian dollar fell significantly on the news and was down against all other major G7 currencies, apart from the New Zealand dollar. The AUDUSD exchange rate rose nearly 35% higher from its March low to its September high. It is now around 5% lower from its September high as traders prepare for an interest rate cut.

How to trade AUDUSD with Admiral Markets UK Ltd

If you are feeling bullish or bearish on the price of AUDUSD you can speculate on its price direction using CFDs. To get started, follow these five simple steps:

  1. Log in to your existing Admiral Markets trading account, or open a live or demo trading account in just a few minutes.
  2. Click Trade on your chosen account which will direct you to the Admiral Markets MetaTrader Web Platform.
  3. Type in AUDUSD, or another instrument, at the bottom of the Market Watch search box and then drag the symbol onto the chart.
  4. Use the one-click trading feature on the chart or right-click on select Trading -> New Order.
  5. Choose your entry, stop loss and target levels and position size (volume) and then confirm the trade.

Admiral Markets MetaTrader 5 Web, AUDUSD, MonthlySource: Admiral Markets MetaTrader 5 Web, AUDUSD, Monthly - Data range: Oct 1, 2006, to Oct 20, 2020, performed on Oct 20, 2020, at 6:53 am BST. Please note: Past performance is not a reliable indicator of future results.


Did you know that you can open a free demo trading account to test your trading ideas and theories regarding the price direction of thousands of markets in a virtual trading environment? Open your free account today by clicking on the banner below and receive free access to Premium Analytic tools and more!

Trade With A FREE Demo Trading Account


INFORMATION ABOUT ANALYTICAL MATERIALS:

The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter "Analysis") published on the website of Admiral Markets. Before making any investment decisions please pay close attention to the following:

1.This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.

2.Any investment decision is made by each client alone whereas Admiral Markets UK Ltd (Admiral Markets) shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.

3.With a view to protecting the interests of our clients and the objectivity of the Analysis, Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.

4.The Analysis is prepared by an independent analyst Jitan Solanki, Freelance Contributor (hereinafter "Author") based on personal estimations.

5.Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis.

6.Any kind of past or modelled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.

7.Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.



CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.