The Australian Dollar (AUD) posted the status of the red labeled candle on the last day of this week and plunged against the US Dollar at the price of 0.7030.
It enjoyed the smooth momentum of improvement before this terrible time and peaked its price at 0.7461, which was one of the highest achievements of AUDUSD on September 01, 2020.
It is the pandemic Covid-19, which causes its impact on the Australian news.
Australia, one of the stronger stock market players, did not escape from its side effects and thus represented a gradual decrease in the price of AUDUSD.
Now, let’s talk about the Today’s drop that could be triggered by the Australian Statistics Bureau’s depreciated trade balance, recorded to be at 4294 M, which is the worst of last month’s number.
The Trade Balance is an early indicator of net export production. If there is constant production in exchange for Australian exports, that will turn into a positive trade balance growth, and that should be positive for the AUD.
Moreover, the upcoming news of the building permits also not supported AUDUSD to grow, and hence it is expected that AUDUSD in the coming days also is on the plunged state.
According to the estimates of the Australian Bureau of Statistics, it would be decreased from 12% to 0%, as compared to the last month’s record.
The Building Permits shows the number of licenses for new construction projects. It implies the movement of corporate (Australian economic development) investment.
At this point, as we have seen its bearish movement, AUDUSD entails the risk of raising itself to the desired level, which will require a strong backup force.