Aussie Dollar Volatility Seen on China, US, Eurozone Event RiskSaturday, Jan 16, 2016 2:11 pm EST
by Ilya Spivak, Currency Strategist
Fundamental Forecast for the Australian Dollar: Neutral
- Australian Dollar Continues to Face China-Driven Risk Aversion Threat
- Upbeat Jobs Data May Trim RBA Rate Cut Outlook, Cap Aussie Losses
- Find Critical Turning Points for the Australian Dollar with DailyFX SSI
The Australian Dollar dropped to finish last week at the lowest levels in nearly seven years as aggressive risk aversion battered the sentiment-linked currency. The S&P 500 – a benchmark for market-wide risk appetite – fell for a second consecutive week to record the largest such losing streak since November 2011. Commodity prices also continued to sink, with a host of aggregate benchmarks of raw materials prices sinking to multi-year lows.The week ahead offers ample opportunities for the rout to continue.