Australian Dollar is currently the second worst performing today so far, following the Pound. Tensions with China are escalating further. The latter is now trying to shift the focus from the origin of the “outbreak” in Wuhan, and blame Australia for the coronavirus pandemic that caused the lives of over 1.5 million people.
The Chinese Communist Party’s hawkish tabloid, the Global Times, wrote in an article: “As the mounting sporadic outbreaks in China were found to be related to imported cold-chain products, with other parts of the world, including Europe and the American continent, reportedly discovering signs of the coronavirus earlier than Wuhan, it begs a new hypothesis – did the early outbreak in Wuhan originate from imported frozen food? The city also imported Australian steak, Chilean cherries, and Ecuadorian seafood before 2019, according to the information from the website of the city’s commerce bureau.”
AUD/CAD’s strong break of 55 day EMA now suggests that rebound form 0.9247 has completed at 0.9617. The consolidation from 0.9696 is likely starting the third leg, and should targets 0.9247 support in the near term, and possibly below. But for now, we’d expect strong support from 38.2% retracement of 0.8066 to 0.9696 at 0.9073 to contain downside.
