We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bearish
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Bullish
Gold
Bearish
GBP/USD
Mixed
USD/JPY
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • U.S. Market Analyst at https://t.co/JsVsSmefgR, Shain Vernier covers - ✔️ Safe haven assets in volatile markets ✔️ Central banks and governments ✔️ How will commodities trade in a recession Only on Trading Global Markets Decoded #podcast. Tune in here: https://t.co/1UmEzEbwiy https://t.co/mu8ruJd0hG
  • The $USD, Euro, British Pound and Australian Dollar will all be at the mercy of political developments in Asia, Europe and North America this week. An avalanche of PMI data will set the backdrop. Find out from @ZabelinDimitri here: https://t.co/L8cfAgVx94 https://t.co/IkL6eYc0eq
  • Are recent gains in the Indian Rupee and Nifty 50 warranted? Risks are brewing in the background, leaving USD/INR in a consolidative setting as the Nifty pressures resistance. Get your $USDINR market update from @ddubrovskyFX here:https://t.co/svDaSdprvN https://t.co/dkQtNiE1fs
  • Seasonal factors, oversupply issues and the outbreak of COVID-19 has seen the price of liquefied #naturalgas (LNG) fall to 22-year lows (1.519), with the situation exacerbated by ‘fuller-than-normal’ storage facilities. Get your market update here:https://t.co/VOqfkBQ4aR https://t.co/hiWxPVFdMv
  • S&P 500 bulls in command, #Nasdaq 100 produces “V” shaped recovery, while #FTSE 100 extends . Get your #equities market update from @daniele recovery https://t.co/mbWlBUItWv https://t.co/N64fXcj97Y
  • Crude #oil prices await the #OPEC+ meeting where record output cuts could be prolonged as demand for energy from the US and China continues recovering. What could be the downside risks? https://t.co/M8BORPx4sH https://t.co/3kHHeibDb9
  • The risk rally continued in a big way this week and #Euro bulls have remained in-charge against the US Dollar and Japanese #Yen. Get your market update from @JStanleyFX here: https://t.co/o7vPmczvMJ https://t.co/GX2YTXz83u
  • The price of #gold may continue to exhibit a bullish behavior in June as the pullback from the yearly high ($1765) reverses ahead of the May low ($1670). Get your Gold market update from @DavidJSong here: https://t.co/OeaYtCpcIo https://t.co/UQVPIVCTCP
  • The $USD breakdown has taken the index into confluence support at the objective yearly open. Get your USD technical analysis from @MBForex here: https://t.co/A16XEv6n4d https://t.co/GzEp3gCAe5
  • US equities continue to run higher with the Nasdaq 100 setting a fresh all-time-high, not even three months after giving back almost a third of its value in about a month. Get your #Nasdaq technical analysis from @JStanleyFX here: https://t.co/1LI54uvI8x https://t.co/e9FvSLqfaA
USD Plummets As S&P 500 Faces Largest Single Day Decline Since June; RBA Cuts Rates

USD Plummets As S&P 500 Faces Largest Single Day Decline Since June; RBA Cuts Rates

2013-08-06 16:25:00
Kevin Jin,
Share:

THE TAKEAWAY: Reserve Bank of Australia cuts its benchmark rate by 25bps > USDJPY hits intraday low of ¥97.49

The Dollar Index is declining for the third consecutive day as the S&P 500 is down by the most since late June. The Dow Jones FXCM Dollar Index (Ticker: USDOLLAR) falls -28 (-0.25%) to $10781 at the time of writing.

The largest event risk today occurred during Asia-Pacific. The Reserve Bank of Australia cut its benchmark rate by 25bps, which was largely anticipated by analysts surveyed by Bloomberg News. The RBA also reiterated many of its former statements. RBA Governor Stevens said, “The Board has previously noted that the inflation outlook could provide some scope to ease policy further, should that be required to support demand … The Board will continue to assess the outlook and adjust policy as needed to foster sustainable growth in demand and inflation outcomes consistent with the inflation target over time.

Global equities are moderately bearish today with the only bright spot being Japan, which pares some of its declines yesterday: S&P -0.58%; Euro Stoxx -0.65%; FTSE -0.23%; Nikkei +1.00%; Hang Seng -1.34% at the time of writing.

AUDUSD 15-minute Chart: August 6, 2013

USD_Plummets_As_SP_500_Faces_Largest_Single_Day_Decline_Since_June_RBA_Cuts_Rates_body_Picture_4.png, USD Plummets As S&P 500 Faces Largest Single Day Decline Since June; RBA Cuts Rates

Charts Created using Marketscopeprepared by Kevin Jin

The AUDUSD is firmly higher by +0.50% at the time of writing. Most of these advances occurred immediately following the RBA Rate Decision. Theoretically, a rate cut would propel a weakening of the currency. However, many traders expected the rate cut (Credit Suisse OIS indicated a 91% of a rate cut prior to the event) so the consequent gains in AUDUSD may indicate that the cut was already priced in.

GBPUSD 15-minute Chart: August 6, 2013

USD_Plummets_As_SP_500_Faces_Largest_Single_Day_Decline_Since_June_RBA_Cuts_Rates_body_Picture_3.png, USD Plummets As S&P 500 Faces Largest Single Day Decline Since June; RBA Cuts Rates

Charts Created using Marketscopeprepared by Kevin Jin

The GBPUSD is flat, trading -0.01% at the time of writing. The cable attempted runs at London Open and early in New York trading but met resistance around $1.5380 both times.

EURUSD 15-minute Chart: August 6, 2013

USD_Plummets_As_SP_500_Faces_Largest_Single_Day_Decline_Since_June_RBA_Cuts_Rates_body_Picture_2.png, USD Plummets As S&P 500 Faces Largest Single Day Decline Since June; RBA Cuts Rates

Charts Created using Marketscopeprepared by Kevin Jin

The EURUSD is slightly higher by +0.23% at the time of writing. The pair consolidated during most of Asian hours but managed to gain some legs early in London trading.

USDJPY 15-minute Chart: August 6, 2013

USD_Plummets_As_SP_500_Faces_Largest_Single_Day_Decline_Since_June_RBA_Cuts_Rates_body_Picture_1.png, USD Plummets As S&P 500 Faces Largest Single Day Decline Since June; RBA Cuts Rates

Charts Created using Marketscopeprepared by Kevin Jin

The USDJPY is down by -0.53% at the time of writing. The pair reached an intraday low of ¥97.49, the lowest level since June 26.

--- Written by Kevin Jin, DailyFX Research

New to trading the EUR/USD? Watch this.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.