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
Bearish
Oil - US Crude
Bearish
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
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
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • 🇲🇽 GDP Growth Rate YoY Final Actual: -1.4% Previous: -0.5% https://www.dailyfx.com/economic-calendar#2020-05-26
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.64%, while traders in US 500 are at opposite extremes with 75.52%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/5aSCLBqXc1
  • Heads Up:🇲🇽 Economic Activity YoY due at 11:00 GMT (15min) Expected: -3.5% Previous: -0.6% https://www.dailyfx.com/economic-calendar#2020-05-26
  • Heads Up:🇲🇽 GDP Growth Rate YoY Final due at 11:00 GMT (15min) Previous: -0.5% https://www.dailyfx.com/economic-calendar#2020-05-26
  • Emerging market currencies haven’t been treated equally by the effects of global contagion, even if most have suffered to some degree. However withdrawal of investment flows could hit them all. Get your market update from @DavidCottleFX here:https://t.co/QzNoNYgMgP https://t.co/rIrzpGTgvn
  • Chinese President Xi says will step up preparedness for military combat
  • Commodities Update: As of 10:00, these are your best and worst performers based on the London trading schedule: Silver: 1.31% Oil - US Crude: 0.90% Gold: -0.22% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/LKcIsCQeTg
  • #DAX30, #dowjones : la reapertura económica lidera los avances #trading https://t.co/GoI9cOuD9A
  • Forex Update: As of 10:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 1.28% 🇦🇺AUD: 1.17% 🇬🇧GBP: 1.01% 🇪🇺EUR: 0.57% 🇨🇭CHF: 0.35% 🇯🇵JPY: 0.04% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/eMQxa6E4eU
  • Coming up at half past the hour: my weekly webinar on market #sentiment. Do join me if you can. You can sign up here: https://www.dailyfx.com/webinars/181540619?ref-author=essex&CHID=9&QPID=917711
Australian Dollar May Fall After Nasdaq Composite Tumbled into Close

Australian Dollar May Fall After Nasdaq Composite Tumbled into Close

2020-05-12 23:00:00
Daniel Dubrovsky, Analyst
Share:

Australian Dollar, AUD/USD, Nasdaq Composite, S&P 500 – Asia Pacific Market Open

  • Australian Dollar trims gains as Nasdaq Composite slides into close
  • Clear catalyst for late selloff seemed absent. Fauci, Fed commented
  • Asia Pacific equities may decline as AUD/USD faces a bearish setup

Australian Dollar Wobbles as Nasdaq Composite, S&P 500 Sink in Final Hours of Trade

The sentiment-linked Australian Dollar wrapped up cautiously lower after trimming gains during Tuesday’s North American trading session. A late-day selloff unexpectedly accelerated losses on Wall Street, with the tech-heavy Nasdaq Composite declining the most over the course of 4 hours since March 25. The anti-risk Japanese Yen aimed slightly higher as the S&P 500 closed -2.05% to the downside.

Forex for Beginners
Forex for Beginners
Recommended by Daniel Dubrovsky
Forex for Beginners
Get My Guide

A clear catalyst behind the rapid selloff seemed absent during the final hours of trade. What is becoming increasingly clear is the fading slope of appreciation in overall US equities. Some newswires attributed losses in stocks on earlier comments from Anthony Fauci, the key infectious disease expert in the US. He warned that states reopening too quickly could ‘set you back on the road on trying to get an economic recovery.

Meanwhile Federal Reserve officials offered their takes on the economy. Loretta Mester – President of the Cleveland branch – said that the unemployment rate could perhaps surpass 20 percent. She also reiterated that the Fed would try to use other tools before considering negative rates. Patrick Harker – President of the Philadelphia branch – said that a second wave of infections would ‘deal a hard hit’ to growth.

Wednesday’s Asia Pacific Trading Session

With that in mind, S&P 500 futures are pointing lower heading into Wednesday’s Asia Pacific trading session. That may speak to what can be a ‘risk-off’ tone to come. This may dampen the Australian Dollar while perhaps supporting the Japanese Yen. The New Zealand Dollar is eyeing the RBNZ monetary policy announcement. Rates are anticipated to be left at 0.25%, but markets may be looking for additional unconventional measures.

Develop the discipline and objectivity you need to improve your approach to trading consistently

Australian Dollar Technical Analysis

The AUD/USD may be at risk to a turn lower down the road. The pair seems to be developing a Double Top which is a bearish reversal chart pattern. A break under support, which seems to lay between 0.6368 to 0.6390, could catalyze a pronounced selloff in the Aussie. Finding confirmation though may be key. Uptrend resumption entails taking out resistance at 0.6570.

AUD/USD BEARISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily -3% -6% -5%
Weekly 7% -8% -3%
What does it mean for price action?
Get My Guide

AUD/USD – 4-Hour Chart

Australian Dollar May Fall After Nasdaq Composite Tumbled into Close

Chart Created in TradingView

--- Written by Daniel Dubrovsky, 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

News & Analysis at your fingertips.