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
Australian Dollar Gains as China Relaxes Margin Lending Curbs

Australian Dollar Gains as China Relaxes Margin Lending Curbs

Ilya Spivak,

Talking Points:

  • Canadian, NZ Dollars fall as Yen gains amid risk aversion in Asia trade
  • Aussie Dollar gains with China stocks margin lendingcurbs are relaxed
  • Fed-speak in focus as markets digest last week’s FOMC rate decision

The sentiment-linked Canadian and New Zealand Dollars are underperforming in overnight trade while the anti-risk Euro and Japanese Yen are trading higher as most Asian stock exchanges edged lower. The regional benchmark MSCI Asia Pacific equity index excluding Japan – where markets are closed for a holiday today – inched down in a move that looked corrective after prices hit a year-to-date high on the back of last week’s FOMC rate decision. Fed officials downgraded their projected rate hike path to imply two 25bps increases in 2016, down from four envisioned in December.

Chinese shares ignored the downbeat mood, rising after regulators loosed limits on short-term margin lending for stock trades. China Securities Finance Corporation, a state-sponsored entity that offers margin funding to brokerages, said it will resume offering capital for periods of 7 to 182 days. It will also cut interest rates to as low as 3 percent. Policymakers scrambled to curb margin-based speculation after sharp selloffs last year. The Australian Dollar – a frequently-used proxy for trading China-related news-flow – rallied alongside the Shanghai Composite stock index, erasing losses sustained earlier in the session and diverging from performance elsewhere in the commodity currency bloc.

Looking ahead, Fed-speak headlines an otherwise quiet economic calendar. Comments from Jeffrey Lacker and Dennis Lockhart, Presidents of the Richmond and Atlanta branches of the US central bank, are due to cross the wires. Both were members of last year’s FOMC and established the hawkish outlook calling for 100bps in 2016 rate hikes that the current policy-setting committee backed away from last week. Traders will be keen to hear how the two officials see the dovish shift and what that might imply about the critical variables impacting Fed policy in late 2015 versus today.

Are FX markets behaving as DailyFX analysts expected so far in 2016? Find out here !

Asia Session

21:00NZDWestpac Consumer Confidence (1Q)109.6-110.7
21:45NZDNet Migration SA (FEB)6070-6130
0:01GBPRightmove House Prices (MoM) (MAR)1.3%-2.9%
0:01GBPRightmove House Prices (YoY) (MAR)7.6%-7.3%
1:45CNYMNI March Business Indicator -
2:00NZDCredit Card Spending (MoM) (FEB)-0.4%-2.3%
2:00NZDCredit Card Spending (YoY) (FEB)7.3%-8.9%

European Session

7:45EURECB’s Coeure Speaks in Paris Medium
8:00CHFMoney Supply M3 (YoY) (FEB)-1.4%Low
8:00CHFTotal Sight Deposits -481.3bLow
8:00CHFDomestic Sight Deposits -411.9bLow
8:15USDFed's Lacker Speaks in ParisMedium
9:00EURECB Current Account SA (JAN)-25.5bLow
9:00EURCurrent Account NSA (JAN)-41.4bLow
9:30EURECB VP Constancio Speaks in London --Medium
11:00GBPCBI Trends Total Orders (MAR)-14-17Low
11:00GBPCBI Trends Selling Prices (MAR)--3Low
11:00EURBundesbank Publishes Monthly Report --Low
11:00GBPBOE's Forbes Speech Text Published --Low

Critical Levels

CCYSupp 3Supp 2Supp 1Pivot PointRes 1Res 2Res 3

--- Written by Ilya Spivak, Currency Strategist for

To receive Ilya's analysis directly via email, please SIGN UP HERE

Contact and follow Ilya on Twitter: @IlyaSpivak

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