Skip to Content
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
No Rest for the Weary as Commodity FX Slide Continues

No Rest for the Weary as Commodity FX Slide Continues

Christopher Vecchio, CFA,

Talking Points:

- AUD/USD begins breaking out of its five-month long triangle.

- JPY-crosses remain well-supported by risk-off flows.

- See upcoming event risk for FX markets.

Good news is bad news again. In the "what's good data is bad news" world, any indication that the Fed could tighten policy faster than currently expected - only two rate hikes are priced in for this year (per Fed funds futures) - against rapidly deteriorating risk sentiment and an increasingly negative geopolitical news cycle seems like a bad mix for higher yielding currencies and risk-correlated assets.

With the FOMC yesterday hammering home the point that its policy normalization would be gradual and data dependent, all focus for risk assets and the US Dollar alike is on the December US labor market release on Friday. A "good" US jobs report would be particularly "bad" for the struggling Australian and New Zealand Dollars, as it would signal the removal of stimulus during an emerging time of panic.

Read more: Riksbank Intervention Threat Aims to Lift EUR/SEK Prices

See the above video for technical considerations in the USDOLLAR Index, EUR/USD, AUD/USD, NZD/USD, GBP/JPY, AUD/JPY, and NZD/JPY. Also, read about my trade of the year: short GBP/JPY.

--- Written by Christopher Vecchio, Currency Strategist

To contact Christopher Vecchio, e-mail

Follow him on Twitter at @CVecchioFX

To be added to Christopher's e-mail distribution list, please fill out this form

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