So recently I’ve been studying the AUD/USD pair and I am really confused about the price-movement during the financial crash in 2008. Shouldn’t the pair rise in value if the dollar plummets? I’m obviously missing something here would love some help thanks a lot.
Please help a confused trader
oh so basically both the Aussie and US dollar plummeted because investors abandoned ship to safer currencies like the yen? I guess that makes sense, thanks a lot it has boggled my mind for some time.
side note: Looks like the japan 225 also went down during that time … I wonder where the investors went? to gold maybe but the the gold rally is a small spike compared to the other currencies total plummet… cash withdraw? banks?
Remember a lot of financial institutions went bust and more got into serious difficulties. Governments helped prop them up but I would imagine (I didn’t trade back then) that the amount of fx trading would have fallen, particularly in riskier pairs
Thanks for the article Carlos! I was looking at this thread yesterday and was hoping for a meaningful replay