28.02.2020: USD subdued despite tensions between Turkey and Syria: outlook for USD/JPY, AUD/USD


The US stocks continue to decline despite strong statistics published yesterday. The US stock indexes are breaking historical lows. The USDX index, which demonstrates the strengthof the greenback against a basket of six major currencies, lost 100 pips during the day, approaching the level of 98.00. The US dollar is losing steam against the background of growing expectations of the key rate cut by the Fed at the March Meeting. So, the US economy is likely to face serious threats amid the rapid spread of coronavirus. The Fed may be forced to take some stimulus measures to ease the detrimental effect of the virus on the economy. The dollar/yen pair is also giving ground. Investors prefer investing in the yen as a more reliable safe-haven asset. The dollar/yen pair went down below the level of 109.00 heading towards our target level of 108.00. At the time of preparing the material for
this video, the quote was locating at the level of 109.50. Apart from the fears over the fast-spreading
epidemic, the safe-haven assets are adding gains amid geopolitical tensions between Turkey
and Syria. Yesterday, the Syrian air force carried out
airstrikes on Turkish army positions in the Idlib province. Investors are poised for war between the two
countries. Turkey is a member of NATO which means that
the countries of the military alliance may be involved in the conflict. The Australian dollar updated its 11-year
low amid the risk aversion. The AUD/USD pair sank to 0.6520 breaking the
support level at 0.6536. If the pair drops further, it may dip to 0.6457. Next week, the RBA will hold its policy meeting. The central bank is highly likely to keep
its key rate unchanged though the policy easing may heal the ailing economy. That’s all for now. We wish you profitable deals! See you on our channel with a new video in
a couple of hours!

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