Forex Trading: Risk off, AUD, CAD continue to slide

by Joe Oliver, Forex Trading-Pips

Forex Trading: Australian and Canadian dollars continued to slide against US dollar on Monday after firing off on the weekly squeeze three weeks ago. Australian dollar is trading at one year lows against the greenback as investors seek refuge from risk assets.

This months RBA statement makes it clear the Australian central bank are open to easier monetary policy going forwards.  The bank announced that “an improved inflation outlook would increase the scope for monetary policy to provide some support to demand, should that prove necessary” whilst also stating that “near-term growth is unlikely to be as strong”. This represents a major shift for the central bank as they acknowledge investor concerns of a slowdown in economic growth. Traders are pricing in an 86 percent chance the RBA will cut rates by half a percentage point to 4.25 percent by November.

Goldman Sachs recently cut its global growth forecast over the next two years, predicting recessions in Germany and France as the European economy stalls and the risk of an economic slowdown in the U.S. grows.

Forex Trading, AUD weekly squeeze

Forex Trading, AUD weekly squeeze

 

 

 

 

 

 

 

 

USD quoted against Canadian Dollar

Forex Trading, USD.CAD weekly squeeze

Forex Trading, USD.CAD weekly squeeze