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
Subscribe
Please try again
EUR/USD
Bullish
Oil - US Crude
Bullish
Wall Street
Bearish
Gold
Mixed
GBP/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
USD/JPY
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
More View more
Real Time News
  • House Financial Services Committee schedules second GameStop hearing for March 17 - BBG $GME
  • Speaker Pelosi says minimum wage increase will not be removed from House Covid bill - BBG
  • Asia-Pacific equities opened broadly lower amid a 'risk off' sentiment following a sour lead from Wall Street overnight. Rising yields and a stronger US Dollar exerted downward pressure over risk assets. https://www.dailyfx.com/forex/market_alert/2021/02/26/Dow-Jones-Falls-on-Rising-Yields-ASX-200-Nikkei-225-Tumble-.html https://t.co/3p7prANkLA
  • The Australian Dollar looks poised to outperform the haven-associated US Dollar and Japanese Yen. However, it may lose ground to the New Zealand Dollar. Key levels for AUD/USD, AUD/JPY and AUD/NZD.Get your $AUD market update from @DanielGMoss here:https://t.co/cuxRxl5WaF https://t.co/MD0ppnO7t6
  • RT @FxWestwater: $NZDUSD, $NZDJPY React as Soaring Treasury Yields Skew Market Risk Profile Link: https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2021/02/26/NZDUSD-NZDJPY-React-as-Soaring-Treasury-Yields-Skew-Market-Risk-Profile.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Westwater&utm_campaign=twr $TNX https://t.c…
  • Biden authorized strikes on Iran-backed militant groups. Strike was in response to attacks on US, coalition forces -BBG citing DOD #CrudeOil
  • The commodity-sensitive Canadian Dollar may continue outperforming its major counterparts in the coming weeks. USD/CAD, CAD/CHF, CAD/JPY and EUR/CAD key levels to watch. Get your market update from @DanielGMoss here:https://t.co/KYdUv2lpFC https://t.co/ZZUJ4AZEhc
  • Market Snapshot: Risk aversion is deepening as Friday APAC trade gets going $NZDUSD and $AUDUSD sinking Following declines in #SP500 and #Nikkei225 futures #USD broadly higher, anti-risk Japanese #Yen as well US 10-Year Treasury rates remain higher https://t.co/gQ50vS73P0
  • RBNZ's Orr: To consider settings against types of home lending, financial stability policies can help government housing objectives -BBG
  • RBNZ's Orr: Only focused on inflation, employment targets -BBG
AUD/USD May Rise if Australian Inflation Data Impresses, FOMC in Focus

AUD/USD May Rise if Australian Inflation Data Impresses, FOMC in Focus

Thomas Westwater, Analyst

Wall Street, AUD/USD, AU Inflation, FOMC – Talking Points

  • Wall Street trading moves lower as investors weigh stimulus odds
  • APAC equity markets look ahead to the US Federal Reserve decision
  • Australian Q4 inflation data may extend AUD/USD gains if data beats
Top Trading Opportunities in 2021
Top Trading Opportunities in 2021
Recommended by Thomas Westwater
Get Your Free Top Trading Opportunities Forecast
Get My Guide

The S&P 500, Nasdaq Composite and Dow Jones Industrial Average gave up early gains on Tuesday and closed in the red by 0.15%, 0.07% and 0.07%, respectively. The Russell 2000 index led stocks lower, closing in the red by 0.62%. The drop in small-cap stocks may reflect growing fears over Covid-induced lockdowns in the US, despite this morning’s upbeat January consumer confidence figure from the Conference Board, released Tuesday morning.

The 10-year Treasury yield rose six basis points to 1.036%, following a sharp drop in US government bond yields on Monday. Concerns are swirling over the chances for more fiscal aid in the United States amid growing pushback from Republican lawmakers. Meanwhile, the White House announced it is stepping up its vaccination distribution efforts after announcing the US will purchase 200 million additional vaccine doses.

S&P 500, 10-Year Treasury Yield, US Dollar – Daily Chart

SPX vs DXY, VS US10y

Chart created with TradingView

Wednesday’s Asia-Pacific Outlook:

Asia-Pacific markets may extend the risk-off tone seen in Tuesday’s Wall Street session as the same concerns over US fiscal stimulus weigh on investors’ minds. The upcoming Federal Reserve interest rate decision is another likely driver for Wednesday’s session. After weeks of gains in equity indexes and other risk assets, traders may take a cautious approach leading into the FOMC event.

While the Fed’s benchmark rates are expected to remain unchanged, economists and other market participants will be keying in on Chair Jerome Powell’s language over the economic recovery and the central bank’s balance sheet. Some expect an off chance for a rollback in asset purchases, but a “wait and see” outcome may be more likely, especially with prospects of additional fiscal stimulus following the recent changes across Capitol Hill.

Aussie-Dollar traders will be eyeing Australia’s Q4 inflation rate, which is expected to cross the wires at 00:30 GMT. The Australian Dollar is up nearly half a percent against the Greenback so far this week, and the upside may continue if inflation data impresses. According to the DailyFX Economic Calendar, the consensus forecast is 0.7% on a YoY basis.

AUD/USD Technical Outlook

AUD/USD is approaching the upper bound of a Symmetrical Triangle after rising above its 12-day Exponential Moving Average earlier this week. The aforementioned inflation data will likely be a key driver for price action, but momentum appears primed to continue following a bullish MACD crossover. Moreover, the Relative Strength Index is improving within neutral territory.

AUD/USD 4-Hour Chart

AUD/USD Chart

Chart created with TradingView

AUD/USD TRADING RESOURCES

--- Written by Thomas Westwater, Analyst for DailyFX.com

To contact Thomas, use the comments section below or @FxWestwateron Twitter

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

DISCLOSURES