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Justin Rampono
Articles written by Justin Rampono
3 Big reasons the Australian dollar is so low
There are 3 main reasons the Australian dollar is so low and they are all have one thing in common – China. China is Australia’s largest trading partner, not just for commodities like iron ore and coal but also for our other important exports like tourism and education. The impact of the coronavirus in China has disrupted the Chinese economy, lowering the demand for commodities Chinese student and tourist numbers have drastically fallen Market panic has made ‘safe haven’ currencies like the US dollar (USD) stronger and ‘commodity’ currencies like the Aussie dollar weaker One of the main reasons […]
Australian dollar recovers after a flash crash to 63 cents
In short Australian dollar ‘flash crash’ sends it to an 11-year low for 20 seconds Traders blame the crash on algorithmic trading platforms Panic hitting markets has increase volatility Time Open Low High Today 0.6597 In the last week 0.6472 0.6655 In the last month 0.6464 0.6748 The Australian dollar collapsed more than 5% in 20 minutes as a mixture of panic and programmatic trading brought the exchange rate tumbling. It did recover to finish the day close to where it began. If you ever wondered what would happen if someone lobbed a hand grenade into a bloodbath, now you […]
Aussie dollar continues to bounce higher as US dollar weakens
In short AUD/USD moves higher after a surprise interest rate cut in the US AUD/NZD hits a 4 month high Stronger than expected Q4 GDP data released yesterday Time Open Low High Today 0.6625 In the last week 0.6464 0.6637 In the last month 0.6464 0.6771 The AUD/USD has bounced higher in the last 48 hours moving more than 1 cent higher against the US dollar. The gains have largely been driven by a weaker US dollar. Yesterday, the market was surprised when the US Federal Reserve held an emergency meeting and cut interest rates. It spooked markets, sending the […]
Interest rates fall in direct response to the coronavirus
In short The RBA cuts interest rates by 0.25% to 0.50% In the first paragraph of the statement, the central bank states that it “took this decision to support the economy as it responds to the global coronavirus outbreak.” The Australian dollar went up marginally but is still between 65 and 66 cents Time Open Low High Today 0.6555 In the last week 0.6464 0.6621 In the last month 0.6464 0.6770 The Reserve Bank of Australia cut official interest rates from 0.75% to a new historic low of 0.50%. It was in direct response to COVID-19 outbreak and they stated […]
Australian dollar drops under 65 cents as pandemic fears move markets
In short The AUD/USD fell below 65 cents as soon as markets opened Monday morning It’s the first time the Australian dollar has gone under 65 cents since the GFC It’s a big week for the Australian dollar with the RBA meeting tomorrow Time Open Low High Today 0.6468 In the last week 0.6464 0.6621 In the last month 0.6464 0.6770 The Australian dollar was hammered last week, hitting an 11 year low but holding above 65 cents. As soon as foreign exchange markets opened this morning, that trend continued as the local currency fell below 65 cents for the […]
AUD heads below 66 cents as virus fears grip markets
In short AUD USD falls below 66 cents for the first time since the GFC The Australian dollar has held up against the other major currencies Little economic data out this week Time Open Low High Today 0.6599 In the last week 0.6587 0.6706 In the last month 0.6587 0.6821 The AUD/USD has spent this week trading either side of 66 cents. It has been slipping lower against the US dollar for a few weeks as coronavirus fears increase. Interestingly, the Australian dollar has not fallen against all currencies. In fact, it has largely remained unchanged against the Euro, British […]
