AUDUSD’s Summer Weakness
AUDUSD’s Summer Weakness
Some of the major US indices see weakness in the summer months, and so too has the AUDUSD pair over the last 10 years. The AUD tends to gain when the outlook for China is strong, as Australia and China are key trading partners. The AUD will also tend to fall when China’s outlook worsens, so some trade the AUD as a proxy for the Chinese Yuan.
The AUDUSD pair has fallen 70% of the time over the last 10 years between August 13 and October 10 with an average fall of 2%. However, the largest fall occurred last year with a drop of over 11%. So, which way will the AUDUSD move between the dates selected?
Major Trade Risks: Note that previous seasonal patterns do not necessarily repeat themselves each year.
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