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
More View more
Real Time News
  • S&P 500, Nasdaq Rally After the Fed; 10 Year Yield to Two-Month-Highs https://www.dailyfx.com/forex/market_alert/2021/09/23/SPX-SPY-ES-SP500-Nasdaq-NQ-QQQ-Rally-After-the-Fed-10-Year-Yield-2-Month-High.html https://t.co/peftVleO0y
  • #Bitcoin Outlook: $BTCUSD Bounce From 40K, Fake-out or Shake-out? - https://t.co/ixsRMKgCom https://t.co/KDQv4wgfot
  • While JPY gets clobbered, CHF decides to turn a blind eye to yields $CHF https://t.co/MViWZiiPZ7
  • The surprise 100 basis point cut from the Turkish central bank (to 18%) generated the expected pressure for $USDTRY. That said, I don't think it was the market that decided the momentum should die out at 8.8000 again... https://t.co/4jmOPnzzK9
  • surprised that $NQ is holding up so well with what rates are doing. 10 year yield at a 2 month high, $Nasdaq still holding resistance at prior support https://t.co/UBWBxY2nFC
  • The S&P 500 has recovered all the ground it lost at the start of the week and the Dollar has slumped post FOMC and PMIs. DailyFX's @JohnKicklighter gives a brief overview of the market for Thursday! https://t.co/jihKB44ELn
  • https://t.co/lbNvVbQq4n
  • The future taper isn't enough to urge the Dollar to a critical bullish break. In turn, $EURUSD has reversed shy of of August's trough and keeps in play an inverse head-and-shoulders pattern with a neckline at 1.19 https://t.co/EgUtX6Pmvy
  • USD/CAD testing short-term moving average support. Traders have cut their long exposure over the week. Get your market update from @nickcawley1 here:https://t.co/iEL5cbFnHs https://t.co/6kLkUFkFvU
  • In the West, that qualifies as a default action. Let's see how it is treated in the world's second largest economy https://t.co/PKWy7SE8Dt
AUD/USD May Fall if Risk Taking Slows as Cases in New South Wales Swell

AUD/USD May Fall if Risk Taking Slows as Cases in New South Wales Swell

Thomas Westwater, Analyst

Australian Dollar, AUD/USD, Fed, Covid, NSW, Bank of Korea - Talking Points

  • Australia’s Covid cases continue to trend higher in NSW state
  • The Bank of Korea (BoK) is set to announce a rate decision
  • AUD/USD approaches resistance after multi-day price gains

Thursday’s Asia-Pacific Outlook

Asia-Pacific markets appear on track to extend the risk-on rise seen earlier in the week. Stocks extended gains during Wall Street’s Wednesday session, with the benchmark S&P 500 index climbing 0.22%. The anti-risk US Dollar softened in line with risk-taking in equity markets. Meanwhile, the sentiment-sensitive Australian Dollar gained versus most peer currencies.

The Federal Reserve’s Jackson Hole Economic Policy Symposium kicks off tomorrow. Fed Chair Jerome Powell will speak on Friday. Some are expecting the Fed chief to send a signal on asset purchases, while others expect that announcement to come at next month’s FOMC meeting. Nonetheless, traders will be keenly focused on the event given the market-moving potential.

While the Australian Dollar is benefiting from the upbeat market mood, the ongoing virus situation in Australia is a flashing warning sign that the good times may not last. Covid cases hit a new daily record on Wednesday. New South Wales (NSW) saw 919 new infections, according to the latest government data. This is beginning to strain hospital capacity in the Greater Sydney area, prompting calls for policymakers to step up vaccination efforts.

Today’s economic calendar points to the South Korean interest rate decision as the main event for markets. Analysts expect the Bank of Korea to hike its benchmark interest rate by 25 basis points from 0.50% to 0.75%, according to a Bloomberg survey. That would mark the first rate hike from a major central bank in the Asia Pacific region. However, given the rising Covid cases seen in the country, a hold on policy in this meeting would not be all that surprising.

AUD/USD Technical Outlook:

The Australian Dollar is approaching technical barriers that may curb the recent gains versus the US Dollar. AUD/USD is nearing the July low at 0.7289, which provided the base for a Rising Wedge’s support level. A falling 20-day Simple Moving Average (SMA) may also provide pressure just above that level. However, the MACD oscillator is signaling a possible uptick in momentum after the MACD line crossed above the signal line.

AUD/USD Daily Chart

aud thomas westwater chart

Chart created with TradingView

Australian Dollar 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