Explore eFXplus Derived Data That Drive Results
A Data Partner of:
Refinitiv
May 07 - 05:55 AM

AUD/USD - COMMENT-AUD/USD Usually Falls In May, China Tensions Wont Help

By Martin Miller  —  May 07 - 03:55 AM

FX traders should be mindful that Australia's open and export-heavy economy is vulnerable to trade tensions, meaning AUD/USD could be harmed in May which typically is a month that sees this currency pair struggle.

China "indefinitely" suspended on Thursday all activity under a China-Australia Strategic Economic Dialogue, its state economic planner said, the latest setback for strained relations between the two countries nL1N2MT048.

Historically, AUD/USD tends to fall in May.
A seasonality study of AUD/USD's performance for each May since 2000 shows it has dropped in 14 of the past 21 years, or 67% of the time.
AUD/USD seasonality should not be considered in isolation, but it becomes more useful when combined the news of the trade tensions with China and subtle medium-term technical signs.

AUD/USD developed long upper shadows on the last two weekly candlesticks, signs of a possible rejection of the upside.
A sustained AUD/USD drop through the May 0.7675 low, would weaken the market structure further and increase the likelihood that it finishes May in negative territory.

For more click on FXBUZ


AUD/USD May Seasonality Chart: Click here

Weekly Chart: Click here

Source:
Refinitiv IFR Research/Market Commentary

Subscription

  • eFXplus
  • End-user license agreement (EULA)

About

  • About
  • Contact Us

Legal

  • Terms of Service
  • Privacy Policy
  • Disclaimer
© 2021 eFXdata · All Rights Reserved
!