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.

Free Trading Guides
EUR/USD
Bullish
GBP/USD
Bullish
USD/JPY
Bullish
Gold
Mixed
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
Bitcoin
Bullish
More View more
Real Time News
  • Central bank independence has several advantages and disadvantages. Find out what they are in-depth with @MartinSEssex here: https://t.co/wVFXbbTxf1 https://t.co/WkwZK6wtzy
  • The $GBPUSD may be carving out a 4-year bearish candlestick pattern as the $EURGBP downtrend prolongs. GBP/JPY may rise but be wary of #Brexit risks clouding technical analysis. Get your GBP market update from @ddubrovskyFX here: https://t.co/wzV4fygKWe https://t.co/hpDmrh0LLo
  • Get your technical setups for the British Pound ahead of the key #Brexit vote in Parliament this weekend here $GBPUSD $EURGBP $GBPJPY - https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2019/10/19/GBPUSD-EURGBP-GBPJPY-Technical-Analysis-Amid-Brexit-Deal-Vote.html?CHID=9&QPID=917702 https://t.co/TBdvAY6GN2
  • The Australian Dollar could reverse gains if #Brexit is forced to be delayed. Global growth slowdown woes and other fundamental risks may also undermine $AUDUSD upside progress. Get your $AUD market update from @ddubrovskyFX here: https://t.co/VAs2C3cpQj https://t.co/9mqJ0DSLZZ
  • Here is my trading video for the week ahead: '$EURUSD, #Pound, Volatility - The Biggest Risks and Opportunities Ahead' https://www.dailyfx.com/forex/video/daily_news_report/2019/10/19/EURUSD-Pound-Volatility---The-Biggest-Risks-and-Opportunities-Ahead-.html
  • $GBPUSD is on the verge of pushing above five-year resistance. A break above with follow-through may precede considerable upside movement. Get your GBP/USD market update from @ZabelinDimitri here: https://t.co/0qfh7TRWJn https://t.co/GImIwuGodX
  • The $AUD may resume its downtrend while the #ASX 200 stock index powers higher as dovish monetary policy drives interest rates lower. Get your market update from @IlyaSpivak here: https://t.co/UPlHZrt6c2 https://t.co/EIIf9xackw
  • (Fundamental Forecast) Australian Dollar Could Wilt if Brexit Delayed, Growth Risks Hang $AUDUSD #Brexit - https://www.dailyfx.com/forex/fundamental/forecast/weekly/aud/2019/10/19/Australian-Dollar-Could-Wilt-if-Brexit-Delayed-Growth-Risks-Hang.html?CHID=9&QPID=917702 https://t.co/2aOYhblN3g
  • The $USD faces selling pressure against the Malaysian Ringgit and Philippine Peso. More losses may be in store in $USDMYR as $USDPHP descends through rising support from 2013. Get your market update from @ddubrovskyFX here: https://t.co/t3kmFpmg1w https://t.co/miBrgxmtkA
  • $AUDJPY has launched yet another attempt to breach a multi-month downward trend resistance after failing to break above it in September. Will two consecutive defeats precede a reversal lower? Find out from @ZabelinDimitri here: https://t.co/b3nWUu0QZy https://t.co/Lj0ZSWOdp1
Australian Dollar Gains as "Trump Trade" Goes Into Reverse

Australian Dollar Gains as "Trump Trade" Goes Into Reverse

2016-11-22 06:39:00
Ilya Spivak, Sr. Currency Strategist
Share:

Talking Points:

  • Australian Dollar gains as “Trump trade” retraces across markets
  • British Pound corrects lower following surge to a three-month high
  • Trump cabinet appointments may reboot post-election trend moves

The Australian Dollar outperformed in overnight trade as US Treasury bond yields retreated, suggesting the move reflects continued digestion of the so-called “Trump trade”. The Aussie faced heavy selling pressure in the aftermath of the US presidential election amid speculation that grandiose fiscal stimulus championed by the President-elect will ramp up inflation and steepen the Fed rate hike cycle. This fueled a market-wide reallocation of portfolios over the past two weeks.

A lull in top-tier news-flow driving the post-election narrative this week appears to be offering stretched markets an opportunity for corrective retracement (as expected). The rates-sensitive Aussie appears to have capitalized accordingly, with the similarly higher-yielding Canadian Dollar following suit. Firming risk appetite across Asian bourses – where shares followed Wall Street upward – probably helped offer a lift to commodity-bloc currencies.

The British Pound faced broad-based selling pressure. A discrete catalyst for the move is not readily apparent. The move may have been corrective after yesterday’s sharp advance that brought the UK unit to the highest level in almost three months against an average of its top counterparts. Follow-through may prove limited however as traders withhold direction conviction ahead of the upcoming release of the UK Autumn Budget Statement.

Looking ahead, another quiet day on the European and US economic calendars opens the door for retracement of “Trump trade” moves to continue. This dynamic may be disrupted if the incoming US President unveils key appointments to the economic policy wing of his cabinet, with particular attention paid to who will be the next Treasury Secretary. The selection of a person that the markets deem reliable and capable of delivering on the incoming administration’s platform may reboot post-election trends.

See the schedule of upcoming webinars and join us LIVE to follow the financial markets!

Asia Session

GMT

CCY

EVENT

ACT

EXP

PREV

22:30

AUD

ANZ Roy Morgan Weekly Consumer Conf

115.5

-

118.2

5:30

JPY

Nationwide Dept Sales (YoY) (OCT)

-3.9%

-

-5.0%

5:30

JPY

Tokyo Dept Store Sales (YoY) (OCT)

-4.4%

-

-3.4%

European Session

GMT

CCY

EVENT

EXP

PREV

IMPACT

7:00

CHF

Trade Balance (OCT)

3.88b

4.37b

Medium

7:00

CHF

Exports Real (MoM) (OCT)

-

4.3%

Low

7:00

CHF

Imports Real (MoM) (OCT)

-

-3.3%

Low

7:45

AUD

RBA's Kent Speech at ABE Event in Sydney

Low

9:30

GBP

Public Finances (PSNCR) (OCT)

-

13.3b

Low

9:30

GBP

Central Government NCR (OCT)

-

22.5b

Low

9:30

GBP

Public Sector Net Borrowing (OCT)

6.0b

10.1b

Low

9:30

GBP

PSNB ex Banking Groups (OCT)

6.0b

10.6b

Low

11:00

GBP

CBI Trends Total Orders (NOV)

-8

-17

Low

11:00

GBP

CBI Trends Selling Prices (NOV)

-

8

Low

11:30

GBP

BOE's Kristin Forbes Speaks in London

Medium

15:00

EUR

Eurozone Consumer Confidence (NOV A)

-7.8

-8

Low

Critical Levels

CCY

Supp 3

Supp 2

Supp 1

Pivot Point

Res 1

Res 2

Res 3

EUR/USD

1.0479

1.0549

1.0590

1.0619

1.0660

1.0689

1.0759

GBP/USD

1.2043

1.2241

1.2368

1.2439

1.2566

1.2637

1.2835

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

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.

DISCLOSURES

News & Analysis at your fingertips.