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.

0

Notifications

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

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • After a gap and crawl higher to start the trading day, the $SPX is now within a tenth of a percent from record highs. This index is working on its 6th consecutive advance https://t.co/VyEQuPClHb
  • The era of UK Quantitative Easing (QE) is coming to an end and the Bank of England (BoE) may well start increasing interest rates in early 2022 as inflation begins to stalk the UK economy. Get your market update from @nickcawley1 here:https://t.co/rYFNS9hcsT https://t.co/9nrLVRXlD7
  • Paul Tudor Jones is a legend, and dropped some bombs today re: inflation, outlook, etc said #Bitcoin was his preferred inflation hedge over Gold atm Him backing $BTCUSD was a big deal to me last year, at the time it was working on that 10k figure. https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/daily_fundamentals/2020/05/07/Bitcoin-Breakout-BTC-to-Fresh-Highs-JS-as-PTJ-Makes-Bull-Case-Bitcoin-to-USD.html
  • Commodities Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Silver: 1.42% Gold: 0.51% Oil - US Crude: -0.91% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/85taidXVz4
  • it's not Bitcoin, but $ETH is working on its own breakout at the moment back above the 4k marker after the #Bitcoin ATH https://t.co/MC3el7SaMS
  • $BTCUSD hits $66,000. Everyday is Bitcoin day
  • $BTCUSD hits 65,000. Happy Bitcoin day everyone
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 91.49%, while traders in USD/JPY are at opposite extremes with 74.20%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/TBOioxBaqY
  • Commodities Update: As of 13:00, these are your best and worst performers based on the London trading schedule: Silver: 1.67% Gold: 0.62% Oil - US Crude: -1.03% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/3L8HLnD5v8
  • #Bitcoin - Daily Chart - breakout to ATH . . Watch the close. . . https://t.co/W75XZqabYP
Gold Prices, EUR/USD and S&P 500 Decline. AUD/USD May Rise on RBA

Gold Prices, EUR/USD and S&P 500 Decline. AUD/USD May Rise on RBA

Daniel Dubrovsky, Strategist

Asia Pacific Market Open Talking Points

  • EUR/USD declined ahead of this week’s ECB rate decision
  • Gold prices extended selloff, USD rose and bond yields fell
  • AUD/USD may rise on RBA if dovish bets get disappointed

Build confidence in your own AUD/USD strategy with the help of our free guide!

Key FX Developments Monday

The Euro underperformed against its major counterparts on Monday, sinking with a decline in hawkish ECB monetary policy bets. Overnight index swaps are now pricing in a 48.6% chance of a hike by December, down from 53.3% possibility at the end of last week. Ahead of this week’s ECB rate decision, markets might be expecting a more cautious statement given regional economic growth concerns.

Meanwhile, the US Dollar capitalized on declines in the Euro, just narrowly outperforming its major peers. Most of its gains occurred during the first half of the session where there was also weakness in Nikkei 225 futures. But, the Greenback struggled to capitalize on safe-haven demand as the S&P 500 tumbled despite increasingly welcome progress in US-China trade negotiations.

This may have been because of ebbing Fed rate hike bets, sapping the full potential from USD as local front-end government bond yields declined. What was more clear today was that gold prices weakened as an anti-fiat asset. Falling bond yields and a cautiously higher US Dollar both worked against the yellow commodity, which has no interest-bearing qualities. XAU/USD has now fallen about 3% after Iwarned about clear-cut bearish technical price signals.

Tuesday’s Asia Pacific Trading Session

Tuesday’s APAC session contains the RBA rate decision. What has been driving AUD/USD lower since February’s monetary policy announcement has arguably been the central bank’s shift away from favoring a hike as its next move. But, it continues to hold onto the notion that there is no strong case for a near-term adjustment in rates.

Join me as I cover the RBA rate decision LIVE and the reaction in the Australian Dollar where I will also be looking at the risks for AUD/USD ahead!

Yet, overnight index swaps are giving a 56.1% chance of a cut by year-end. If the RBA continues to reiterate their patient tone, the Australian Dollar may rally as dovish policy bets get priced out. Its ultimate direction will more likely be determined by risk trends though, influenced by Caixin China PMI services data. S&P 500 futures are pointing lower, the anti-risk Japanese Yen may gain if weakness in the Nikkei 225 ensues.

US Trading Session Economic Events

Gold Prices, EUR/USD and S&P 500 Decline. AUD/USD May Rise on RBA

Asia Pacific Trading Session Economic Events

Gold Prices, EUR/USD and S&P 500 Decline. AUD/USD May Rise on RBA

** 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

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

DISCLOSURES