News & Analysis at your fingertips.

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. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Graphic Rewind: RBA Rate Hold and Government Shutdown Pushes USD Lower

Graphic Rewind: RBA Rate Hold and Government Shutdown Pushes USD Lower

Benjamin Spier, Technical Strategist

Talking Points:

  • US Dollar Index declines on US government shutdown
  • Aussie strength on RBA rate hold pushes USD lower

A look back at the past 24 hours of Forex trading using movements in the US Dollar Index:

US Dollar 15-Minute 08:00 09/30 to 08:00 10/01 EST

Graphic_Rewind_RBA_Rate_Hold_and_Government_Shutdown_Pushes_USD_Lower_body_Picture_1.png, Graphic Rewind: RBA Rate Hold and Government Shutdown Pushes USD Lower

Want to trade with proprietary strategies developed by FXCM? Find out how here.

Although US equity indexes are trading higher, seemingly ignoring the prevalent government shutdown headlines, the US Dollar has shown the largest daily range today in over a week, following a period of low volatility trading. The US Dollar also set a new weekly low and dipped below 10,500 overnight.

The decline in the greenback began at the start of yesterday’s New York session, following a headline suggesting stability for the Italian government, as explained in yesterday’s graphic rewind. However, those US Dollar losses were soon erased during the remained of the New York session.

The US Dollar began an overnight selloff in the two hours before the midnight start to the US government shutdown. The dollar may have suffered as the last chances for lawmakers to come to an agreement on a spending bill failed to yield an agreement.

That overnight selloff continued during the Tokyo session, when the RBA announced it would keep the interest rate unchanged, giving the Aussie strength against the US Dollar. Greenback weakness continued before the London open, as the government shutdown effects may have still been making its way through the Forex markets.

Finally, Prime Minister Abe officially announced that Japan will raise its consumption tax beginning in April, sending the Yen higher against all pairs, including the US Dollar. That was the only major event to move the US Dollar in the London session, as a number of European economic releases failed to significantly impact the currency markets.

New to Forex? Watch this video

Charts created by Benjamin Spier using Marketscope 2.0

-- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to .

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