Australian stocks are having one of their worst weeks this year. The AUS200 index has declined from a high of $6835.35 to a low of $6635.25. This decline is as a result of the weakening sentiment on global trade. It is also because of a large scandal that has engulfed the country’s banking sector. Early this month, the country’s large banks reported relatively weak results due to low interest rates, a slowing economy, and investigations. These problems continued yesterday when Westpac Bank reported that it had not followed money laundering and counter-terrorism laws. This led to more than 23 million breaches. The bank, together with other banks, will, therefore, be under increased scrutiny by the country’s officials.
AUS200 Technical Analysis
The AUS200 index declined sharply after the latest banking scandal emerged yesterday. The index dropped to a low of $6635. It is now trading at $6670. On the hourly chart, the pair is trading slightly above the lower line of the Bollinger Bands while the RSI has remained slightly above the oversold level of 30. The Average True Range (ATR) has risen sharply. The index may continue being volatile as the market observes the ongoing China-US standoff and the banking scandal.