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
Mixed
GBP/USD
Mixed
USD/JPY
Bullish
Gold
Bullish
Oil - US Crude
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
Bitcoin
Bearish
More View more
Notice

DailyFX PLUS Content Now Available Freely to all DailyFX Users

Real Time News
  • CHF Switzerland August M3 Money Supply YY: Actual: 2.7% Previous: 3.2%
  • Join @DavidCottleFX 's #webinar at 4:00 AM ET/8:00 AM GMT for your weekly update on the top Asia Pacific market drivers that traders should watch this week. Register here: https://t.co/HNf3Axw8s5 https://t.co/KUJecuuyWg
  • Indices Update: As of 07:00, these are your best and worst performers based on the London trading schedule: US 500: 0.36% Wall Street: 0.32% France 40: -0.10% Germany 30: -0.32% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/m9Hm0d41Lt
  • European Opening Calls From IG: #FTSE 7345 +0.00% #DAX 12433 -0.28% #CAC 5675 -0.27% #IBEX 9151 -0.31% #STOXX 3558 -0.39%
  • What is prop trading and how can retail traders benefit? Tune into the #podcast episode featuring Morad Askar, aka Futures Trader 71. Only on Global Markets Decoded. Tune in here: https://t.co/2jDvD9L1Er https://t.co/STqSwY7OBT
  • Crude Oil Prices May Fall on ECB Commentary, US PMI Data - https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/commodities/2019/09/23/Crude-Oil-Prices-May-Fall-on-ECB-Commentary-US-PMI-Data.html?utm_source=Twitter&utm_medium=Spivak&utm_campaign=twr #CrudeOil #ECB #PMI #OOTT
  • Germany 30 IG Client Sentiment: Our data shows traders are now at their least net-long Germany 30 since May 04 when Germany 30 traded near 12,460.20. A contrarian view of crowd sentiment points to Germany 30 strength. https://www.dailyfx.com/sentiment https://t.co/szH9YPYhHG
  • RT @LiveSquawk: UK PM Johnson: Do Not Wish To Elevate Belief There Will Be A New York Breakthrough On Brexit -A Great Deal Of Progress Has…
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 98.07%, while traders in France 40 are at opposite extremes with 88.92%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/OrePrrlL0a
  • (ASEAN Fundamental Outlook) US Dollar ASEAN Outlook Bullish, Trade Deal Hopes Fade, PHP at Risk #ASEAN #USD #USDPHP #TradeTalks - https://www.dailyfx.com/forex/fundamental/article/special_report/2019/09/23/US-Dollar-ASEAN-Outlook-Bullish-Trade-Deal-Hopes-Fade-PHP-at-Risk.html?utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/0V1NIlGFuR
S&P 500 Soars as Data Underscores Dovish Fed, AUD/USD Awaits RBA

S&P 500 Soars as Data Underscores Dovish Fed, AUD/USD Awaits RBA

2019-02-05 00:30:00
Daniel Dubrovsky, Analyst
Share:

Asia Pacific Market Open Talking Points

  • Disappointing US economic data underscored dovish Fed, S&P 500 rose as bonds fell
  • Australian Dollar looks to RBA rate decision, will it shift away from favoring a hike?
  • Anti-risk Japanese Yen may trade lower as APAC equities follow gains on Wall Street

Find out what the #1 mistake that traders make is and how you can fix it!

Wall Street soared for a fourth consecutive day as market-wide optimism picked up during the latter half of Monday’s trading session. The S&P 500 climbed 0.68% as it extended the near-term uptrend from late December. The confidence in investors sapped the demand for US Treasuries as prices fell.

The aggressive rise on Wall Street occurred after a slew of US economic data missed expectations. Factory and durable goods orders disappointed (see calendar below), underscoring the recent dovish turn in the Federal Reserve. Still, the US Dollar largely outperformed against its major counterparts.

This seemed to be because of gains in the greenback during the first half of the session when Nikkei 225 futures steadily traded lower. Upside performance in USD peaked afterwards when it had to contend with conflicting forces (rising stocks versus rising bond yields). The former tends to sap the appeal of USD.

Asia Pacific Trading Session

Due to its lackluster performance in the first half of Monday’s session, the pro-risk Australian Dollar ended the day narrowly lower. Ahead, it will be facing the first Reserve Bank of Australia rate decision of this year. Since December’s announcement, there have been several important developments externally. Most notably are the dovish Fed and increasing fears of a global economic slowdown (especially in China).

Markets have become increasingly dovish of the RBA as a result, but their policy stance has been neutral for some time. On top of that, Governor Philip Lowe has kept the notion that they favor their next move as a hike. If the central bank still hangs on to that outlook, then Aussie Dollar may rise. On the other hand, shifting away from that bias and to something more in-line with market bets would probably hurt it.

Join me as I cover the RBA rate decision live beginning at 3:15 GMT as I go over the Australian Dollar’s reaction and what could be in store for it afterwards.

Technical analysis hints that the Australian Dollar could be heading for another rosy week. Aside from the RBA, given the rosy performance on Wall Street, Asia Pacific benchmark stock indexes may trade higher. This would further weaken the anti-risk Japanese Yen which aimed narrowly lower Monday.

US Trading Session

Chart of US Trading Session Economic Calendar

Asia Pacific Trading Session

Chart of Asia Pacific Trading Session Economic Calendar

** All times listed in GMT. See the full economic calendar here

FX Trading Resources

--- Written by Daniel Dubrovsky, Junior Currency Analyst for DailyFX.com

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

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

DISCLOSURES

News & Analysis at your fingertips.