Never miss a story from Daniel Dubrovsky

Subscribe to receive daily updates on publications
Please enter valid First Name
Please fill out this field.
Please enter valid Last Name
Please fill out this field.
Please enter valid email
Please fill out this field.
Please select a country

I’d like to receive information from DailyFX and IG about trading opportunities and their products and services via email.

Please fill out this field.

Your Forecast Is Headed to Your Inbox

But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk.

Your demo is preloaded with £10,000 virtual funds, which you can use to trade over 10,000 live global markets.

We'll email you login details shortly.

Learn More about Your Demo

You are subscribed to Daniel Dubrovsky

You can manage your subscriptions by following the link in the footer of each email you will receive

An error occurred submitting your form.
Please try again later.

Asia Pacific Market Open Talking Points

  • US Dollar depreciation prolonged into a second day, is AUD/USD bottoming?
  • GBP/USD wobbled, UK PM Theresa May resigned with Brexit talks ongoing
  • Euro vulnerable to European Parliamentary Election results in thin Asia trade

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.

US Dollar Weakens for a Second Day

The US Dollar underperformed against its major counterparts, extending its decline into a second day. Some point to a set of softer-than-expected US durable goods orders data as a catalyst, but weakness in the Greenback was gradual and occurred throughout the session. This could be as a result of positioning ahead of a loaded week for US economic data and the threat it poses to USD via Fed rate cut bets.

As a result, the pro-risk Australian and New Zealand Dollars outperformed, also benefiting from a cautious uptick in sentiment as equities began rising in Asia before trimming gains during the Wall Street trading session. This resulted in the Euro Stoxx 50 ending the day about 0.71% to the upside while the S&P 500 only finished 0.14% higher.

Australian Dollar Technical Analysis

Taking a closer look at the AUD/USD daily chart reveals a bottom that could be in the works. The pair formed a bullish Morning Star candlestick pattern while simultaneously pushing above the near-term falling resistance line from the middle of April. Another confirmatory close to the upside may be the momentum needed to overturn the dominant downtrend, exposing resistance at 0.6982.

AUD/USD Daily Chart

Did AUDUSD Bottom? GBPUSD Wobbled as UK PM Resigned Amidst Brexit

Chart Created in TradingView

British Pound Wobbles as Theresa May Resigns

It was long coming and speculation of it sent the British Pound tumbling in recent weeks, but UK Prime Minister Theresa May announced on Friday that she will be stepping down and a new leader is anticipated by the end of July. Being official, this will complicate Brexit negotiations depending on what agenda the new PM takes. GBP/USD was volatile, being pushed and pulled between that and US Dollar weakness.

Monday’s Asia Pacific Trading Session

The Euro could be volatile to the European Election results, with a greater share of Eurosceptic parties a fundamental political threat to the currency. EUR/USD technical signals do point to potential weakness down the road. This may be compounded by lower-than-normal liquidity levels with US markets offline until Tuesday for the Memorial Day holiday with a relatively quiet economic docket in Monday Asia trade.

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