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.

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
EUR/USD
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
Oil - US Crude
Mixed
Wall Street
Bearish
Gold
Bearish
GBP/USD
Mixed
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
USD/JPY
Bearish
More View more
Real Time News
  • The 200-day is working sideways almost in straight-line fashion, clocking in at 12195. It should stay steady around that level for a while given its lack of any kind of trajectory. Get your #DAX technical analysis from @PaulRobinsonFX here:https://t.co/89QDSAH3lx https://t.co/WhkXTDkmsC
  • Indices Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Germany 30: 1.04% France 40: 0.98% FTSE 100: 0.60% US 500: 0.03% Wall Street: 0.02% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/UAThIT98XL
  • USD/MXN has rallied back above confluence support but keep price within the confines of the near-term downtrend. Get your $USDMXN technical analysis from @MBForex here: https://t.co/I2nrgrvwq6 https://t.co/o32vPKLGKQ
  • #SP500 teetering on frequently-tested support at 3282.3. See my full take in my daily election and market update at 23:00 GMT. https://t.co/aRlCRLosqw
  • Vote on House Stopgap funding bill expected this Tuesday according to aide - BBG
  • Commodities Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.00% Gold: -2.17% Silver: -8.68% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/5abU7hof5c
  • Poll: Many are weighing their market convictions today, so it is worth running a poll. Do you think the break lower today from the S&P 500, global indices, emg markets, carry and other 'risk' assets is the start of a lasting bear wave (ie a weeks long and -10%-plus rout)?
  • #Gold technical support zone discussed in today's webinar catching the lows. . . $XAUUSD - https://t.co/4s1mlKp2rr https://t.co/vZYjrSVNJZ
  • RT @USCBO: By the end of 2020, federal debt held by the public is projected to equal 98% of GDP. The projected budget deficits would boost…
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.33%, while traders in NZD/USD are at opposite extremes with 66.21%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/6wPYEEd6ni
AUD May Erase Gains Amid US-China Tension After Tech Stocks Cratered

AUD May Erase Gains Amid US-China Tension After Tech Stocks Cratered

2020-07-23 23:00:00
Dimitri Zabelin, Analyst
Share:

Australian Dollar, New Zealand Dollar, Coronavirus, US-China Relations – TALKING POINTS

  • Technology stocks cratered in Wall Street trade after alarming jobless data print
  • Australian Dollar selling pressure could rise as US-China continue to escalate
  • AUD/NZD retreating from five-year resistance again – where will it go next?

Stocks on Wall Street ended on a gloomy note. The Dow Jones, S&P 500 and Nasdaq indices closed 1.31, 1.23 and 2.29 percent lower, respectively. In the S&P 500 benchmark, information technology took the hardest hit, specifically under the technology hardware, storage & peripherals subcomponent. Apple Inc – the second largest company in the index’s weighting system – fell and helped drag the S&P 500 lower.

Amazon and Microsoft – also considered to be index heavy weights – were also steeped in red which contributed to the overall decline across US equity markets, specifically for the technology sector. Stocks were hit hard after initial jobless claims data – a highly-scrutinized statistic amid the pandemic – showed a worse-than-expected print.

These claims jumped by 1416k, far above the 1300k estimate and reinforced fear about the severity and duration of the virus-induced recession. Secretary of State Mike Pompeo gave an arguably provocative speech on US-China relations shortly after the government ordered the shutdown of the Chinese consulate in Houston. Beijing has vowed to retaliate but has not made it clear how.

Friday’s Asia-Pacific Trading Session

Asia-Pacific trade brings a light raft of economic data which will likely then put the focus for investors on fundamental themes. Escalating US-China trade tensions will likely continue to dampen sentiment and punish-cycle-sensitive assets like AUD and NZD while giving a tailwind to USD and JPY. Sentiment-linked commodities like crude oil may also suffer with the risk of gold and silver retracing some of their recent gains.

AUD/NZD Analysis

AUD/NZD has struggled to break above a five-year descending resistance channel despite spiking 6.30 percent from the March lows. The rejection at the slope of depreciation with follow-through could signal the start of a broader decline. Downside momentum may slow at the first layer of support at 1.0521, but if selling pressure remains acute it could open the door to testing a secondary substrate at 1.0484.

AUD/NZD – Daily Chart

Chart showing AUD/NZD

AUD/NZD chart created using TradingView

--- Written by Dimitri Zabelin, Currency Analyst for DailyFX.com

To contact Dimitri, use the comments section below or @ZabelinDimitriTwitter

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

DISCLOSURES