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
  • Is the Japanese Yen Hitting a Turning Point? - #USDJPY chart on @TradingView
  • Heads Up:🇹🇭 Balance of Trade (SEP) due at 03:30 GMT (15min) Expected: $-0.8B Previous: $-1.22B
  • Stock markets may be vulnerable to political volatility as China flexes its military might against Taiwan ahead of the Biden-Xi summit. Will reconciliation yield to rockets? Find out from @ZabelinDimitri here:
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Gold: 0.20% Silver: 0.19% Oil - US Crude: -0.09% View the performance of all markets via
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.20% 🇳🇿NZD: 0.19% 🇨🇦CAD: 0.15% 🇨🇭CHF: 0.03% 🇬🇧GBP: 0.01% 🇯🇵JPY: -0.12% View the performance of all markets via
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 90.58%, while traders in USD/JPY are at opposite extremes with 77.23%. See the summary chart below and full details and charts on DailyFX:
  • RT @josh_wingrove: Biden went to Baltimore and gave the biggest update yet on the Congressional talks, said the corporate tax rate won’t ri…
  • Gold prices are under pressure after China growth slowed and New Zealand inflation surged, with investors pricing in more aggressive central bank policy outlooks, which is supporting bond yields.Get your market update from @FxWestwater here:
  • Australian Dollar gaining during morning Asia trade after reports crossed the wires that #Evergrande made a bond interest payment Sentiment is cautiously improving, #SP500 futures are pushing higher $AUDUSD #SP500 #AUD
  • RT @josh_wingrove: Some clarity: President Biden's comment on the tax rate was referring to the challenge of having the votes to raise the…
AUD/USD Losses Moderate With Treasury Yields. Japanese Election in Focus for APAC

AUD/USD Losses Moderate With Treasury Yields. Japanese Election in Focus for APAC

Thomas Westwater, Analyst

Australian Dollar, AUD/USD, Treasury Yields, Japanese Election, Risk Trends– Talking Points

  • Australian Dollar and risk assets fall as Treasury yield climb continues
  • Japanese lawmakers set to elect the ruling party’s next leader today
  • AUD/USD puts in price floor after downside energy eases overnight

Wednesday’s Asia-Pacific Forecast

The sentiment-linked Australian Dollar sold off with other high-beta assets overnight as risk aversion took hold. A surge in Treasury yields punished stocks in Tuesday’s New York session. The benchmark 10-year note’s yield rose again, extending gains into the fifth day. The selloff in government bonds appears to be easing. Nonetheless,the higher yields pressured equity markets, particularly growth-sensitive technology stocks. A downbeat consumer confidence report added fuel to bearish bets before Wall Street’s opening bell.

Major headwinds to the economic recovery, such as Covid-19 cases and rising prices, have traders reevaluating risk exposure. Rising yields also point to a solid belief that higher rates are now locked in. The safe-haven US Dollar and Japanese Yen gained amid the market turmoil. Crude oil fell against the stronger Dollar and a surprise build in inventory levels. The American Petroleum Institute (API) reported a build of 4.12 million barrels, which surprised analysts’ expectations for a reduction in stocks.

The economic calendar is void of potential risk events, but Japan’s lawmakers will vote to replace its party leader in the ruling Liberal Democratic Party elections. Taro Kono and Fumio Kishida are the top contenders. The Japanese Yen may see a volatile section as election news makes its way across the wires today.

China reported downbeat industrial profits yesterday, with the year-over-year figure for August slowing to 49.5%, down from 57.3% in July. Later this week, China’s National Bureau of Statistics (NBS) will report manufacturing and services sector PMIs for September. Chinese economic data is under the gun, even more so than usual, with the Evergrande Group’s potential downfall amplifying regional risks factors. The Australian Dollar may react on the data given the country’s trade relationship with China.

AUD/USD Technical Forecast

The Australian Dollar fell overnight although the pace of losses slowed. A price floor near the 0.72 handle appears to be in place, along with support from a prior trendline from July. A break below those levels may see bearish pressure strengthen. The falling 26-day Exponential Moving Average (EMA) is likely to offer resistance if prices rebound in the near term.

AUD/USD 8-Hour Chart

aud-usd chart

Chart created with TradingView

--- Written by Thomas Westwater, Analyst for

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

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