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
Bullish
Oil - US Crude
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
Wall Street
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
Gold
Bullish
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
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • $Gold still making a strong push. Next week the resistance side of the channel making up the bull flag becomes confluent with the 1859 fibo level $GC $GLD https://t.co/QNSaIRbXCS https://t.co/O1bo7FHhIi
  • 🇺🇸 Wholesale Inventories MoM (MAR) Actual: 1.3% Expected: 1.4% Previous: 0.9% https://www.dailyfx.com/economic-calendar#2021-05-07
  • 🇨🇦 Ivey PMI s.a (APR) Actual: 60.6 Previous: 72.9 https://www.dailyfx.com/economic-calendar#2021-05-07
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 88.16%, while traders in Wall Street are at opposite extremes with 73.93%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/EiAO8cJJtm
  • even an encouraging sign for $Silver here broke above resistance yday. has pulled back to find some support at that zone 27-27.23 not the same bullish flare as $gold but, encouraging nonetheless https://t.co/94XYUYtyar https://t.co/Afw32QInwm
  • Commodities Update: As of 13:00, these are your best and worst performers based on the London trading schedule: Gold: 1.12% Silver: 0.57% Oil - US Crude: 0.51% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/cqFJXCaNDo
  • $Gold even the pullbacks have been clean, another fresh high post #NFP https://t.co/9lkpkPJrGi https://t.co/c0uUw8gK05
  • Heads Up:🇺🇸 Wholesale Inventories MoM (MAR) due at 14:00 GMT (15min) Expected: 1.4% Previous: 0.9% https://www.dailyfx.com/economic-calendar#2021-05-07
  • Heads Up:🇨🇦 Ivey PMI s.a (APR) due at 14:00 GMT (15min) Previous: 72.9 https://www.dailyfx.com/economic-calendar#2021-05-07
  • USD/CAD price action pivoted nearly 30-pips lower in response to the latest employment data. Get your $USDCAD market update from @RichDvorakFX here:https://t.co/AI9EdEY8pL https://t.co/Rfs0owYs9U
Reserve Bank of Australia (RBA) Rate Cut to Rattle AUDUSD Rebound

Reserve Bank of Australia (RBA) Rate Cut to Rattle AUDUSD Rebound

David Song, Strategist

Trading the News: Reserve Bank of Australia (RBA) Interest Rate Decision

The Reserve Bank of Australia (RBA) interest rate decision may rattle the recent rebound in AUDUSD as the central bank is expected to reduce the official cash rate (OCR) to a fresh record-low of 1.00%.

Image of DailyFX economic calendar

The RBA is anticipated to lower the cash rate by another 25bp in July despite the trade truce between the US and China, Australia’s largest trading partner, as Governor Philip Lowe insists that “the Board seeks to wind back spare capacity in the economy and deliver inflation outcomes in line with the medium-term target.

In turn, a reduction in the OCR along with a dovish forward guidance may curb the recent rebound in AUDUSD, with the Australian dollar at risk of facing additional headwinds over the near-term as Governor Lowe states that “the possibility of lower interest rates remains on the table.

However, a more bullish scenario may arise for the Australian dollar should the RBA keep the benchmark interest rate at 1.25%.

Sign up and join DailyFX Currency Strategist David Song LIVE for an opportunity to discuss key themes and potential trade setups surrounding foreign exchange markets.

Impact that the RBA interest rate decision had on AUD/USD during the last meeting

Period

Data Released

Estimate

Actual

Pips Change

(1 Hour post event )

Pips Change

(End of Day post event)

JUN

2019

06/04/2019 04:30:00 GMT

1.25%

1.50%

+6

+18

June 2019 Reserve Bank of Australia (RBA) Interest Rate Decision

AUD/USD 5-Minute Chart

Image of audusd 5-minute chart

The Reserve Bank of Australia (RBA) cut the official cash rate (OCR) by 25bp to a fresh record of 1.25% in June, with the central bank stating that “today's decision to lower the cash rate will help make further inroads into the spare capacity in the economy.

It seems as though the RBA will continue to change its tune over the coming months as “recent inflation outcomes have been lower than expected,” but Governor Philip Lowe and Co. appear to be in no rush to reestablish a rate easing cycle as “the central scenario remains for the Australian economy to grow by around 2¾ per cent in 2019 and 2020.

The Australian dollar held its ground despite the 25bp rate cut as the RBA shows limited interest in delivering a back-to-back rate cut, with AUDUSD consolidating throughout the day to close at 0.6991. Learn more with the DailyFX Advanced Guide for Trading the News.

AUD/USD Rate Daily Chart

Image of audusd daily chart
  • Keep in mind, the AUD/USD rebound following the currency market flash-crash has been capped by the 200-Day SMA (0.7100), with the exchange rate marking another failed attempt to break/close above the moving average in April.
  • In turn, AUD/USD remains at risk of giving back the rebound from the 2019-low (0.6745) as the wedge/triangle formation in both price and the Relative Strength Index (RSI) unravels.
  • However, lack of momentum to hold above the 0.7020 (50% retracement) pivot has pushed AUDUSD back towards the 0.6950 (61.8% expansion) to 0.6960 (38.2% retracement) area, with the next downside region of interest coming in around 0.6850 (78.6% expansion) to 0.6880 (23.6% retracement)

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 Strategist

Follow me on Twitter at @DavidJSong.

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

DISCLOSURES