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
Mixed
Oil - US Crude
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
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
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
Bullish
More View more
Real Time News
  • The Consumer Price Index, better known by the acronym CPI, is an important economic indicator released on a regular basis by major economies to give a timely glimpse into current growth and inflation levels. Learn how to better understand CPI here: https://t.co/nAa0fHHGbZ https://t.co/y0zq7YdcRf
  • Heads Up:🇦🇺 RBA Meeting Minutes due at 01:30 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-06-15
  • Nasdaq 100 Hits All-Time High, Hang Seng and ASX 200 May Follow https://www.dailyfx.com/forex/market_alert/2021/06/15/Nasdaq-100-Hits-All-Time-High-Hang-Seng-and-ASX-200-May-Follow-.html https://t.co/Wqldw4aXNC
  • RT @FxWestwater: Hello traders! The Weekly Commodities Trading Prep webinar will be pushed 24 hours to Wednesday 2:00 GMT/10:00 pm EST. Joi…
  • Natural gas spot prices have been on the rise, recapturing a key trendline, following the EIA’s Short-Term Energy Outlook. Where can prices head from here? Find out from @FxWestwater here:https://t.co/yK48nZD1ag https://t.co/rRT4oBDnrK
  • Even in quiet market conditions, you can always find some activity #Philippine stock index (PSEi) up about 13.5% from late May low Expectations of easing lockdowns in the Manila capital region have been a fundamental driver Falling Wedge breakout facing the 61.8% Fib at 6916 https://t.co/VPtB78GRvl
  • USD/JPY IG Client Sentiment: Our data shows traders are now net-short USD/JPY for the first time since Jun 04, 2021 when USD/JPY traded near 109.52. A contrarian view of crowd sentiment points to USD/JPY strength. https://www.dailyfx.com/sentiment https://t.co/KPOyPWpuDn
  • Interesting tone update from the Bank of Indonesia ahead of this week's rate decision The CB said yesterday that it sees Rupiah weakening as 'still reasonable' But. it will maintain measures to stabilize the exchange rate See my tech update here - https://t.co/vu89Lt0boZ
  • The US Dollar continues to see varied performance against ASEAN currencies. USD/SGD is consolidating. USD/THB may bounce. USD/IDR and USD/PHP could continue lower.Get your market update from @ddubrovskyFX here:https://t.co/Ccvcy93t5X https://t.co/cejykWrenF
  • RT @FxWestwater: $AUDUSD Eyes RBA Minutes After Iron Ore Rally Fails to Lift Aussie Dollar Link: https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2021/06/14/AUDUSD-Eyes-RBA-Minutes-After-Iron-Ore-Rally-Fails-to-Lift-Aussie-Dollar.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Westwater&utm_campaign=twr https://t.co/AlQ6…
Australian Dollar Outlook: Inflationary Theme in Spotlight as AUD/USD Sputters

Australian Dollar Outlook: Inflationary Theme in Spotlight as AUD/USD Sputters

Thomas Westwater, Analyst

Australian Dollar, AUD/USD, Inflation, CPI -Talking Points

  • Wall Street stocks extend losses from day prior as traders weigh risks
  • Inflationary pressures on global economy in focus as commodities rise
  • AUD/USD consolidation appears likely as the currency pair hovers near resistance

Wednesday’s Asia-Pacific Outlook

Asia-Pacific markets may continue to trade to the downside on Wednesday following another selloff on Wall Street, although losses may moderate. The benchmark S&P 500 index dropped 0.87%, while volatility spiked higher, with the VIX fear gauge rising near the 22 handle. Tuesday saw Hong Kong’s Hang Seng Index (HSI) drop over 2.0%.

Market participants appear worried over the impact rising inflation can inject into markets amid continuing upward pressure across commodities. Several S&P 500 companies have stated that a portion of input costs stemming from raw materials will pass down to consumers. The Federal Reserve maintains a transitory view on any coming inflationary rise, which may be reinforced by several Fed members set to speak over the next 24 hours. China’s April inflation figures fell short of expectations, with the YoY figure printing at 0.9% versus the consensus forecast of 1.0%.

Despite that, fears over a sustained rise in prices appear to be seeping into sentiment, with the implication being that it would cause policy makers to tighten policy. Investors will likely be evaluating those concerns not just for the time being but likely through the entire post-pandemic recovery. Tomorrow’s CPI print out of the United States will be key to gauging inflationary pressures in the market. According to the DailyFX Economic Calendar, the year-over-year forecast stands at 3.6%, with the prior read at 2.6%.

Meanwhile, Crude oil prices drifted slightly higher overnight as the Colonial pipeline shutdown in the US persist. Copper and iron ore prices are moving higher, a boost to the Australian Dollar as rising prices bolster the country’s export revenue streams. The Australian Dollar advanced against the US Dollar overnight.

Speaking of Australia, March final building permits is set to cross the wires this morning, with analysts expecting a print of 17.4% on a MoM basis. India, still grappling with a severe Covid outbreak, will release industrial and manufacturing production data, which could see industrial commodities like copper and iron ore react.

AUD/USD Technical Breakdown

The Australian Dollar appears to be in a phase of consolidation versus the US Dollar. AUD/USD is trading shortly below the 0.7850 level, which has posed as resistance this week thus far. MACD is trending to the upside, while the Relative Strength Index appears subdued at the 60 mark. A break higher could see the psychologically important 0.79 handle serve as resistance before aiming at the February swing high. Alternatively, a move lower would likely see 0.78 underpin prices.

AUD/USD Daily Chart

audusd

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