Commodity currencies crash on USD dominance
The US dollar – which had been the worst-performing currency over the past few months – has roared back to life as investors weigh up the prospects of a second wave of the coronavirus and new national lockdown measures.
The dominance of the currency which is set to record its best week since April has hit commodity currencies particularly hard. The Australian dollar vs US dollar (AUDUSD) exchange rate has fallen more than 5% in September already, a huge amount in the five-trillion dollar a day currency market.
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Other commodity currencies such as the New Zealand dollar, South Africa rand and Mexican peso have also been hit hard. The general ‘risk-off’ mode this week has also infected global stock markets which are on track for the fourth week of declines.
How to trade AUDUSD with Admiral Markets UK Ltd
If you are feeling bullish or bearish on the price of AUDUSD or other global currencies, you can speculate on its price direction using CFDs. To get started, follow these five simple steps:
- Log in to your existing Admiral Markets trading account, or open a live or demo trading account in just a few minutes.
- Click Trade on your chosen account which will direct you to the Admiral Markets MetaTrader Web Platform.
- Type in AUDUSD, or another instrument, at the bottom of the Market Watch search box and then drag the symbol onto the chart.
- Use the one-click trading feature on the chart or right-click on select Trading -> New Order.
- Choose your entry, stop loss and target levels and position size (volume) and then confirm the trade.
Source: Admiral Markets MetaTrader 5 Web, AUDUSD, Weekly – Data range: April 13, 2014, to September 24, 2020, performed on September 24, 2020, at 7:09 am BST. Please note: Past performance is not a reliable indicator of future results.
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