This could be the next currency to fall

Analysis performed at the close of the US market by Kathy Lien, CEO of Strategy FX at BK Asset Management.

He appreciated Tuesday against other major currencies after his vice president, Richard Feder, Richard, had declared his support for the gradual rise in interest rates with some development towards the neutral level. While he also admits he does not know where the neutral level really is and worries about the expected drop in inflation, investors have focused on the rhetoric of rising interest rate hikes. They ignored their concerns about capital spending, as well as warnings from the Fed chairman about slowing growth over the next two years. In this perspective, US economic reports have boosted the dollar. Aside from rising housing prices, the Conference Board's decline has been unobtrusive, spreading slightly higher than 18-year-olds. As a result, the US dollar increased its lead against other major currencies, with the exception of the dollar and the dollar.

There were three key moves Tuesday on the Forex – it has exceeded the level of 1.13, has recorded a monthly minimum and has extended its rebound. But the currency pair we follow most closely is that there are a number of reasons why the next currency could fall. And above all, everything indicates that the United States will become more and more strict in terms of trade with China. Despite the impending meeting between Presidents Trump and Xi, the US administration continues to downplay the possibility of an agreement. The chief economic adviser to the White House said he was disappointed with the trade negotiations conducted so far and Trump is preparing to raise tariffs on China. While this may be a political decision to surprise after downplaying expectations, these statements reaffirm for the moment our theory that we will not have much clarity in the meeting. The increase in trade tensions is detrimental to Australia's economic forecasts. The Chinese are already extremely weak and any additional pressure on growth could lead the Chinese government to depreciate the currency, thereby reducing the purchasing power of Chinese importers and hence the demand for Australian exports. They have also fallen sharply in recent days and these movements could also affect the Australian dollar. We have already begun to see a downward trend as the AUD / USD closed the day under the 20-day SMA for the first time this month. The next stop should be at 0.7165, at least in November.

Five reasons why the Australian dollar could be the next currency to fall

1. The United States is tough on trade with China
2. The Chinese yuan is below the threshold of 7.00 for a dollar
3. Prices are in free fall – they are now at their lowest for four months
4. Strong demand for dollars
5. The AUD / USD remains below the SMA of 20 and 100 days