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The vast majority of retail client accounts lose money when trading CFDs.
Important Notice - Fraud awareness
Important Notice - Scam alert
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
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AUD/USD - Bears dominate as Trade Import data fails to impress Bulls

AUD/USD fell significantly yesterday up to the Asian session today to a new low at 0.74720. The bulls were forced to take profits after pushing the price so high earlier this week to a new high at 0.76595. The decision to sell off comes in as the Australian Trade data released by the Australian Bureau of Statistics yesterday discounted the Aussie currency as imports were far higher than expected. The report, therefore, failed to give the bulls any strong reasons to push higher. AUD has lost over 0.87% of its value following this report. 

 

Furthermore, the expected strong yields on the US dollar following the hawkish Fed minutes pushed investors to take profits. The focus seems to have been shifted to the US data. The Fed minutes had revealed plans for the balance sheet reduction by more than $1 trillion a year while raising the rates alongside. 

 

Nonetheless, the increasing tensions between Russia and Ukraine and war-crimes allegations placed on Russia further chase investors away from higher-yielding assets such as the Aussie and leads investors to seek safety in the US dollar. 

 

The Australian dollar is generally bearish, and the fall might last longer this week, given the heightened concerns about the interest rate hikes for the dollar. The next strong support for AUD/USD is at 0.73640. We expect the bulls to come back possibly in this region; otherwise, a further loss might follow for the currency pair this week.

Last Updated: 07/04/2022

This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


 

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