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.

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
Bearish
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
Gold
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
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • Central banks often deem it necessary to intervene in the foreign exchange market to protect the value of their national currency. Learn how central bank intervention can impact your trading here: https://t.co/8G8mUX4so6 https://t.co/KG9k8BnyD6
  • Gold Price Forecast: Long-Term Yields May Keep XAU/USD on the Backfoot - https://t.co/YV1gkiTPrq #GOLD $GLD $XAUUSD https://t.co/oT1lIcChN6
  • 🇳🇱 Inflation Rate YoY (FEB) Actual: 1.8% Previous: 1.6% https://www.dailyfx.com/economic-calendar#2021-03-04
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 93.03%, while traders in Germany 30 are at opposite extremes with 69.08%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/rHzkW4zqv7
  • Dealing with the fear of missing out – or FOMO – is a highly valuable skill for traders. Not only can FOMO have a negative emotional impact, it can cloud judgment and overshadow logic. Learn how you can control FOMO in your trading here: https://t.co/lgDf5cVYOn https://t.co/kIGn36WXO2
  • Forex Update: As of 05:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.28% 🇳🇿NZD: 0.09% 🇨🇭CHF: 0.07% 🇨🇦CAD: 0.02% 🇯🇵JPY: -0.03% 🇪🇺EUR: -0.08% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/d2JGjMhNQn
  • Heads Up:🇳🇱 Inflation Rate YoY (FEB) due at 05:30 GMT (15min) Previous: 1.6% https://www.dailyfx.com/economic-calendar#2021-03-04
  • Indices Update: As of 05:00, these are your best and worst performers based on the London trading schedule: Wall Street: -0.33% US 500: -0.54% FTSE 100: -0.54% France 40: -0.67% Germany 30: -0.81% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/WVmqPR5R29
  • Risk trends are on the lam again with Nasdaq 100 threatening to usher the reversal, but I remain skeptical that fire will catch. Meanwhile, global 10yr yields are rising again, pulling gold down. Watch I'm watching: https://www.dailyfx.com/forex/video/daily_news_report/2021/03/04/Nasdaq-Breakdown-Raises-Risk-Trend-Questions-Yields-Push-Dollar-and-Gold.html https://t.co/2RFnWOaXa4
  • 🇯🇵 Consumer Confidence (FEB) Actual: 33.8 Previous: 29.6 https://www.dailyfx.com/economic-calendar#2021-03-04
AUD/USD Rate Vulnerable to Slowing Australia GDP

AUD/USD Rate Vulnerable to Slowing Australia GDP

David Song, Strategist

Trading the News: Australia Gross Domestic Product (GDP)

Australia’s Gross Domestic Product (GDP) report may produce a bearish reaction in AUD/USD as the growth rate is expected to increase 2.6% after expanding 2.8% per annum during the three-months through September.

Image of DailyFX economic calendar

Evidence of a slowing economy may push the Reserve Bank of Australia (RBA) to alter the forward-guidance for monetary policy as Governor Philip Lowe warns that ‘there were significant uncertainties around the forecasts, with scenarios where an increase in the cash rate would be appropriate at some point and other scenarios where a decrease in the cash rate would be appropriate.’ In turn, another below-forecast GDP print may drag on AUD/USD as it encourages the RBA to further support the economy, with the exchange rate at riskexhibiting a more bearish behavior over the coming days as it trades near the February-low (0.7054).

However, a positive development may heighten the appeal of the Australian dollar as it puts pressure on Governor Lowe & Co. to lift the official cash rate (OCR) off of the record-low, and an above-forecast GDP may spur a rebound in the exchange rate as it sparks bets for an RBA rate-hike. Sign up and join DailyFX Currency Analyst David Song LIVE for an opportunity to discuss potential trade setups.

Impact that the Australia GDP report has had on AUD/USD during the previous print

Period

Data Released

Estimate

Actual

Pips Change

(1 Hour post event )

Pips Change

(End of Day post event)

3Q

2018

12/05/2018 00:30:00 GMT

3.3%

2.8%

-10

-54

3Q 2018Australia Gross Domestic Product (GDP)

AUD/USD 15-Minute Chart

Image of audusd 15-minute chart

Updates to Australia’s Gross Domestic Product (GDP) report showed economic activity increasing 2.8% per annum in the third-quarter of 2018 after expanding a revised 3.1% during the three-months through June.

The remarks suggest the RBA is in no rush to alter the monetary policy outlook as ‘the low level of interest rates is continuing to support the Australian economy,’ and it seems as though the central bank will stick to the wait-and-see approach over the coming months ‘the central scenario is for the Australian economy to grow by around 3 per cent this year and by a little less in 2020 due to slower growth in exports of resources.

Nevertheless, the lack of dovish comments generated a bullish reaction in the Australian dollar, with AUD/USD advancing from the 0.7200 handle to close the day at 0.7233. Learn more with the DailyFX Advanced Guide for Trading the News.

AUD/USD Daily Chart

Image of audusd daily chart
  • Broader outlook for AUD/USD remains tilted to the downside as the flash-crash rebound stalls at the 200-Day SMA (0.7253), with the Relative Strength Index (RSI) still at risk of indicating a bearish trigger as the oscillator comes up against trendline support.
  • AUD/USD now trades near the February-low (0.7054) after failing to close above the 0.7170 (23.6% expansion) to 0.7180 (61.8% retracement) area, with the lack of momentum to hold above the 0.7090 (78.6% retracement) to 0.7110 (78.6% retracement) region bringing the 0.7020 (50% expansion) hurdle on the radar.
  • Next downside region of interest comes in around 0.6950 (61.8% expansion) followed by the 0.6850 (78.6% expansion) area.

Additional Trading Resources

New to the currency market? Want a better understanding of the different approaches for trading? Start by downloading and reviewing the DailyFX Beginners Guide!

Are you looking to improve your trading approach? Review the ‘Traits of a Successful Trader series on how to effectively use leverage along with other best practices that any trader can follow.

--- Written by David Song, Currency Analyst

Follow me on Twitter at @DavidJSong.

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

DISCLOSURES