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Today’s jump in Coronavirus cases in the Hubei region is bringing bears to the Aussie’s yard today. What do you think of this trend trade?

Currency Snapshot:

Major Forex Pairs Performance from MarketMilk
Major Forex Pairs Performance from MarketMilk

Fresh Market Headlines & Economic Data:

Upcoming Potential Catalysts on the Forex Calendar:

  • Germany’s final CPI at 7:00 am GMT
  • EU economic forecasts at 10:00 am GMT
  • U.S. CPI report at 1:30 pm GMT
  • U.S. weekly unemployment claims at 1:30 pm GMT

What to Watch: AUD/USD

AUD/USD 1-hour Forex Chart
AUD/USD 1-hour Forex Chart

The biggest story during the Asian session is the Hubei province reporting 14,840 new confirmed Coronavirus cases after China adopted a new diagnosis classification. For comparison, there were only 1,638 new cases from the area yesterday. Yikes!

Now that most of the major central bankers have shared their two cents, it makes sense for markets to turn their focus back on the disease that’s threatening global growth. Unfortunately, it doesn’t look like we’ll see the end of the theme anytime soon.

This is why AUD/USD’s downtrend is more interesting today.

If you believe that risk-averse theme from today’s Coronavirus headlines is just getting started, then you can jump in on AUD/USD’s downtrend and aim for new February lows. That’s below .6670, yo!

If you’re betting on weak U.S. CPI numbers, however, or if you think that the 1-hour SMAs will provide enough support until a new economic theme overshadows the Coronavirus headlines, then you can also buy during a consolidation and aim for a pullback to the .6740 previous highs.