AUD/USD Analysis

Aussie dollar posts massive weekly decline ahead of Chinese GDP and AUS jobs data
AUD/USD finds momentary support in a crucial week for risk assets
Get your hands on the Aussie dollar Q2 outlook today for exclusive insights into key market catalysts that should be on every trader's radar:

Aussie Dollar Posts Massive Weekly Decline Ahead of Chinese GDP and AUS Jobs Data

The Aussie dollar is commonly known to trade in a similar fashion to the S&P 500 index, rising during the good times and falling during economic downturns. The ‘high beta’ currency has actually exhibited a disconnect from the longer-term, positive correlation with the S&P 500 as Chinese economic prospects have worsened. Australia is highly dependent of China’s appetite for its largest import, iron ore, but a flailing property sector and uncertain external environment has forced China to be more selective with its imports – a drag on AUD .

Last week, the Aussie dollar posted a massive decline, erasing the early April gains. This week traders will need to monitor the uncertain geopolitical environment in the Middle East as it impacts risk appetite, as well as Australian jobs data and Chinese GDP for the first quarter.

AUD/ USD Daily Chart and SPX Overlay