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
EUR/USD
Bearish
Oil - US Crude
Bullish
Wall Street
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
Gold
Bearish
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • And the Monday Asia trading session has officially begun. A pair to have on your watch list to kick off early trade: $AUDUSD post head-and-shoulders' neckline (and 200-DMA) breakdown https://t.co/iuYqEN5xpv
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Find out about the recent history of ISM data, how to track it, and how to trade its release here: https://t.co/MZtBh88nOv https://t.co/DIP9cgoSUt
  • Here are the top scheduled event risks on my calendar for the coming week. Global PMIs, a few rate decisions, the Fed's bank stress test results, the Fed's favorite inflation indicator and a run of Fed speak among much more: https://t.co/3jIl4PvHiA
  • I know it is a cognitive bias, but it seems that every time I take a day off, there are significant market moves. Dow's tumbled into a 5th straight session Friday with 10-day correlation to Nasdaq most extreme negative in 4 years https://t.co/V3U6IOAEXz
  • *Reminder: Weekly Strategy Webinar tomorrow morning at 8:30am EST (12:30GMT) on DailyFX!! - lots to discuss on the back of last week's #Fed Fireworks! https://t.co/lxd5fZnn4H
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here: https://t.co/KDjIjLdTSk https://t.co/l0j9vLrMIp
  • Markets Week Ahead: Gold, Dow, Pound-Dollar, BoE Rate Decision, Fed Risk, PMIs Check out my recap of last week and preview of upcoming event risk, plus all the latest forecasts from the @DailyFX team below. Link to Analysis - https://www.dailyfx.com/forex/fundamental/forecast/weekly/title/2021/06/20/Markets-Week-Ahead-Gold-Dow-Pound-Dollar-BoE-Rate-Decision-Fed-Risk-PMIs.html $GLD $DJI $GBPUSD #Trading
  • Traders focus a lot of their energy on spotting the perfect time to enter a trade. While this is important, it is ultimately where traders choose to exit trades that will determine success. Learn about the three types of trading exit strategies here: https://t.co/muYkTNXH7s https://t.co/hbZPJmoOHe
  • Trading bias allows traders to make informative decisions when dealing in the market. This relates to both novice and experienced traders alike. Start learning how you may be able to make more informed decisions here: https://t.co/rz7fqhRoMG https://t.co/C0i7u1dDKL
  • What suits your style of trading stocks or commodities? Find out what are the differences in these two markets here: https://t.co/BnA07cMV0s https://t.co/Q69HKBXeKH
USD/CAD Eyes Support as Crude Oil Prices Rise on Global Trade News

USD/CAD Eyes Support as Crude Oil Prices Rise on Global Trade News

Daniel Dubrovsky, Strategist

Asia Pacific Market Open Talking Points

  • Canadian Dollar outperforms with crude oil on global trade developments
  • Trump targeting telecommunications may sap Asia stock upside potential
  • AUD/USD looking at a critical jobs report that may surprise optimistically

Trade all the major global economic data live as it populates in the economic calendar and follow the live coverage for key events listed in the DailyFX Webinars. We’d love to have you along.

FX News Wednesday

The Canadian Dollar was the best-performing major on Wednesday, bolstered by a couple of optimistically-interpreted updates regarding global trade news. Firstly, there was a general pickup in sentiment after US President Donald Trump said that he was planning to delay imposing auto tariffs for up to 6-months. This helped boost equities across the board.

Secondly, US Treasury Secretary Steven Mnuchin later in the day noted that the United States, Canada and Mexico are nearing a deal to remove metal tariffs. This is a sticking issue regarding the USMCA, which is the alternative to NAFTA, that still needs to be approved by Congress. Combining these events helped to boost sentiment-linked crude oil prices, with CAD brushing off a mixed local CPI report earlier in the day.

USD/CAD Technical Analysis

USD/CAD thus once again struggled to break above resistance between 1.3469 and 1.3445 in what appears to be false upside breakout noted earlier in the week. This leaves prices looking at near-term support again at 1.3390 which if cleared, opens the door to testing congestion support between 1.3291 and 1.3251. The latter has done its job at keeping prices in congestion mode since March.

USD/CAD Daily Chart

USD/CAD Eyes Support as Crude Oil Prices Rise on Global Trade News

Chart Created in TradingView

Despite the shift in market optimism, the pro-risk Australian and New Zealand Dollars still underperformed. The anti-risk Japanese Yen was only little changed across the board. This likely owed to the downside gap in the S&P 500 on Wednesday and that European benchmark stock indexes sunk shortly after opening for trade. These are volatile times for not just equities, but also currencies given the uncertainties of trade wars.

Thursday’s Asia Pacific Trading Session

It is unclear if Asia Pacific equities can follow-through and echo gains from Wall Street. S&P 500 futures are little changed with slight downside bias. Chinese equities could be in for a rough day after Trump signed an order based on national security grounds that could restrict US businesses from using telecommunications equipment that may pose a threat to security.

While not targeting any specific company, this is anticipated to restrict Chinese firms such as Huawei and ZTE Corp, from US endeavors and it may complicate ongoing US-China trade talks. If there is ‘risk-off’ trade to come, the anti-risk Japanese Yen may accelerate gains that we have seen in recent days. The sentiment-linked New Zealand Dollar could be vulnerable.

Australian Jobs Report

Meanwhile, the Australian Dollar will be awaiting the upcoming local jobs report. This is data that has recently increased in importance after the RBA, after leaving rates unchanged last week, emphasized improvements needed on that front for inflation to be consistent with their target. Australian economic news flow has still been tending to outperform relative to expectations. Thus, AUD/USD may find support on this data.

Join me as I cover the Australian jobs report LIVE and the reaction in AUD/USD where I will also be taking a look at what else is instore for Aussie crosses ahead!

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