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.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Real Time News
  • Implementing a trading checklist is a vital part of the trading process because it helps traders to stay disciplined, stick to the trading plan, and builds confidence. Learn how to stick to the plan, stay disciplined, and use a checklist here:
  • We are heading into a Tuesday lull which precedes Wednesday's FOMC focus. Will the absence of distractions allow for risk trends to gain momentum or perhaps will Fed anticipation temper the $SPX tumble? My take:
  • CTV projects Trudeau wins his third term as Canada's Prime Minister - BBG
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here:
  • US House Speaker Pelosi says top-line spending number may change but hopes for $3.5 trillion in spending bill - BBG
  • RBA Minutes: - Board committed to providing high level of monetary support - Q3 GDP expected to decline materially - Central scenario is rates on hold until 2024 - BBG $AUDUSD
  • Heads Up:🇦🇺 RBA Meeting Minutes due at 01:30 GMT (15min)
  • New Zealand reports 14 new local Covid cases - BBG
  • I had a chance to talk with @tastytradeRyan and @victorJ0NES about Evergrande and its impact on US markets — always great talking with these two guys on Mondays.
  • RT @cheddar: Stocks dropped the most since May on Monday, sending shockwaves through Wall Street. @CVecchioFX explains the global impact of…
Australian Dollar Forecast: Lockdowns Drag Aussie Dollar as Chinese FDI Approaches

Australian Dollar Forecast: Lockdowns Drag Aussie Dollar as Chinese FDI Approaches

Thomas Westwater, Analyst

Australian Dollar, AUD/USD, Covid, NZ Business PMI, Chinese FDI - Talking Points

  • Australian Dollar falls versus US Dollar as Canberra enters snap lockdown
  • China’s foreign direct investment (FDI) may cross the wires this Friday
  • AUD/USD looks to extend its post-wedge breakdown as downside picks up

Friday’s Asia-Pacific Outlook

The Australian Dollar is dropping against most of its major peers into Friday’s Asia-Pacific trading session. Investors started to hit the sell button on the Aussie Dollar on Thursday after Australia’s capital city, Canberra, started a snap lockdown. Weakness accelerated overnight as US traders digested the news. The new lockdown will affect nearly 400,000 people. That adds to recent lockdown woes, with Sydney going into the seventh week of restrictions.

Elsewhere, Wall Street traded higher after weekly initially jobless claims dropped to 375k from 387k for the week ending August 7. The Dow Jones Industrial Average (DJIA) rose to a fresh record high despite only gaining 0.04% on the day. Better-than-expected earnings have also helped push equities higher in recent weeks. The Walt Disney Co. reported a strong quarter on its top and bottom lines after Thursday’s closing bell.

This morning, New Zealand saw BusinessNZ release its July performance of manufacturing index (PMI)at 62.6, up from June’s 60.7 reading. New Zealand doubled down on its zero-Covid policy this week. Prime Minister Jacinda Ardern said, “We're simply not in a position to fully reopen just yet.” That said, the island nation’s strict border controls are likely to stay in place until next year. While that will likely hurt commerce and no doubt tourism, it will also allow New Zealand to more readily control the spread of any outbreaks, which could bode well for its domestic economy.

China is set to release data on foreign direct investment (FDI) for July, which could come as soon as today, although the data release may be delayed through August 18, according to Bloomberg. Foreign investment inflows to China have slowed through the prior three months, with June’s year-over-year change dropping to 28.7%. Still, in absolute terms, China’s FDI remains much higher this year than any on record as the economic powerhouse continues to make policy changes to attract foreign investment. Given Australia’s trade relationship with China, the Australian Dollar may be some underlying strength if FDI gains steam in July.

AUD/USD Technical Outlook:

The Australian Dollar has extended a move lower after failing to break back above a prior level of support formed from a Rising Wedge pattern. MACD is also taking a turn lower, crossing below its signal line, a bearish sign. That may see AUD/USD continue to fall, perhaps to the 0.7286 level where the wedge pattern stemmed from.

AUD/USD Daily Chart

audusd wedge, Thomas Westwater

Chart created with TradingView


--- Written by Thomas Westwater, Analyst for

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.