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
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • 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
  • Gold is jumping again today and briefly tested its 200-day simple moving average before turning lower Despite the quick retracement, the gold price chart is starting to look encouraging https://t.co/Dvd4H9vQEs
  • Levels for Yields on the $US10Y post-#NFP . . . Watch the close today. . https://t.co/ZFZnLXiH5f
  • And now people are wondering why said group of workers is no longer willing to accept low wages? This is a major psychological shift on a society-wide level.
  • After decades of calling certain workers "low skill," we then have a dramatic turn of pace with calling them "essential" during the pandemic, seeing as how society would have literally collapsed without them....
Lackluster Australia CPI to Keep AUDUSD Rate Under Pressure

Lackluster Australia CPI to Keep AUDUSD Rate Under Pressure

David Song, Strategist

Trading the News: Australia Consumer Price Index (CPI)

Updates to Australia’s Consumer Price Index (CPI) may impact the near-term outlook for AUDUSD as the headline reading is projected to increase to 1.5% from 1.3% per annum in the first quarter of 2019.

Image of DailyFX economic calendar

Signs of stick price growth may curb the recent decline in AUDUSD as it encourages the Reserve Bank of Australia (RBA) to revert back to a wait-and-see approach at the next meeting on August 6.

However, the details of the report may do little to curb the recent decline in AUDUSD as the core rate of inflation is expected to narrow to 1.5% from 1.6% during the same period. In turn, a batch of lackluster data prints may drag on the Australian dollar as it puts pressure on the RBA to further embark on its rate easing cycle.

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 Australia CPI report had on AUD/USD during the previous release

Period

Data Released

Estimate

Actual

Pips Change

(1 Hour post event )

Pips Change

(End of Day post event)

1Q

2019

04/24/2019 01:30:00 GMT

15.%

1.3%

-50

-75

1Q 2019Australia Consumer Price Index (CPI)

AUD/USD 15-Minute Chart

Image of audusd 15-minute chart

Australia’s Consumer Price Index (CPI) narrowed more than expected during the first three months of 2019, with the headline reading slipping to 1.3% from 1.8% per annum in the fourth quarter of 2018. A deeper look at the report showed a similar development for the core rate of inflation, with the trimmed mean index printing at 1.6% versus projections for a 1.7% print.

The Australian dollar struggled to hold its ground following the batch of lackluster data prints, with AUDUSD falling below the 0.7050 area to close the day at 0.7015. 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 AUDUSD rebound following the currency market flash-crash has been capped by the 200-Day SMA (0.7083), with the exchange rate marking another failed attempt to break/close above the moving average in July.
  • In turn, the broader outlook for AUDUSD remains tilted to the downside, with the exchange rate still at risk of giving back the rebound from the 2019-low (0.6745) as both price and the Relative Strength Index (RSI) continue to track the bearish formations from late last year.
  • Moreover, the advance from the June-low (0.6832) has sputtered ahead of the Fibonacci overlap around 0.7080 (61.8% retracement) to 0.7110 (78.6% retracement), which lines up with the 200-Day SMA (0.7083), with the near-term outlook for AUDUSD mired by the recent series of lower highs and lows.
  • The Fibonacci overlap around 0.6850 (78.6% expansion) to 0.6880 (23.6% retracement) sits on the radar, with a break of the June-low (0.6832) raising the risk for a move towards 0.6730 (100% expansion).

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