The index of US dollar was slightly declining around the level of 103.57 in Asia trading session. It happened on Tuesday, but it was still at the high range year over year period. 

Vice versa, the trio of dollar commodities struggled to wake up from their multi months lowest record touched yesterday. When this news mewaspadai written, the AUD / USD tried to raise. 

That pair tried to move from the 0.6970 level, but it was still annoyed by a psychology limit of 0.7000. The NZD / USD was hold under the area around 0.6350 in this foreign exchange market. 

Mean while, USD / CAD continued to move around it’s highest record for 17 months at 1.3000. From this data it can be seen that several pairs were experiencing changes from their position. 

Three Main Factors are Contributed to The changes 

Based on the analysis, there are three main factors which are contributing in this situation. Those factors are the US dollar appreciation, declining stock exchange, and main global commodities. 

Some updated news last week also made the USD appreciation was stronger. It is especially the news about the April 2022 Non Farm Payroll report and The Fed FOMC meeting result.

All parties agree to support the continued interest Rate increase for 50 basis point. This can be applied for many times again within this year. In the other side, wall street was slumped. 

That is why; another world stock exchange and dollar commodity are experiencing the impact too. These aspects were declined as well during that Wall Street stock exchange condition.

The Australian Dollar is Getting Underpressured Again

These two aspects were experiencing the same condition because they have a sensitive characteristic. It is especially related to a change in market risk interest change and growth projection. 

The declining prices of major commodities, especially the crude oil and Iron at the beginning of this week made the pressure on Australian Dollar is bigger than before. The same condition was also faced by the other currencies. 

The examples are NZD and Canadian Dollar. A wake up effort done by THE AUD yesterday must be noted properly. That may be a sign of a bounce from the year to date lowest record. 

It is especially those which were formed in last January. However, the general fundamental condition Gave us a sign of possibility for the AUD / USD to weakening again. 

The China’s Macro Concern Comes with It’s Effect

The fact is that a wide risk off action make the contract of coal price weakened. That has made the AUD / USD pair sold under the level of 0.70 for the very first time since January. 

This data was stated by Jeremy Stretch who is known as a head of strategy in a famous institution, CIBC capital Market’s. He also informed another condition that must be highlighted.

Jeremy said that for this time, a concern due to the happening China macro concern is making the USD / CNH run higher than before. That brings AUD wider in the market. 

The background of financial market volatility increase showed that AUD has a further possibility to fall to the United States dollar And the other major currencies in a short term period.

The Australia’s Economy Data was not Good

The latest report showed that the Australia’s economy data was not that satisfying. NAB did a survey of business trust and it showed a significant decline score from 16 to 10 in April 2022.

A quarter retail sale growth by 1.2 percent and beyond the consensus estimation. For you information, the estimation made by consensus is 1.0 percent. However, It is weaker than a 8.2% growth in a quarter before.