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
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
GBP/USD
Bullish
USD/JPY
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
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
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
Bitcoin
Mixed
More View more
Real Time News
  • Indices Update: As of 08:00, these are your best and worst performers based on the London trading schedule: US 500: -0.08% Wall Street: -0.10% France 40: -0.26% Germany 30: -0.33% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/PWzxPVafIA
  • Join our analysts for live coverage of all major economic data at the DailyFX Webinars. https://www.dailyfx.com/webinars?re-author=Cottle?utm_source=Twitter&utm_medium=Cottle&utm_campaign=twr
  • What are safe-haven assets and how can you trade them? Find out: https://t.co/B9RRWB7sZ0 https://t.co/aPiBLA6kqD
  • European Opening Calls From IG: #FTSE 7554 -0.24% #DAX 13443 -0.54% #CAC 5978 -0.54% #AEX 608 -0.56% #MIB 23576 -0.55% #IBEX 9529 -0.47% #STOXX 3750 -0.51%
  • AUD/USD Technical Analysis: Key Aussie Dollar Support at Risk - https://www.dailyfx.com/forex/technical/home/analysis/aud-usd/2020/01/23/AUDUSD-Technical-Analysis-Key-Aussie-Dollar-Support-at-Risk.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Spivak&utm_campaign=twr #AUDUSD #technicalanalysis https://t.co/cVBAkQiQAC
  • #Singapore CPI clocked in at 0.8% y/y in December versus 0.7% expected, was the fastest pace since April 2019. $USDSGD trading higher though as the "risk-off" tone in Asia prolongs and is arguably overshadowing monetary policy fundamentals #MAS #SP500 https://t.co/TDNEiRcVBm
  • Have you joined @DailyFX @facebook group yet? Discuss your #forex strategies and brush up on your skills with us here: https://t.co/jtY1G7g8yx https://t.co/6n0HiLDDGm
  • For those that have read my #NZD technical special report, my colleague @IlyaSpivak will be discussing the fundamental side of things when he covers New Zealand CPI tomorrow. Signup for the session below! https://t.co/UpehrZ0ml2
  • Will an uptick in New Zealand CPI lift #NZD, or will an already neutral #RBNZ outlook be overshadowed by risk-off selling? Join live coverage of the data release, starting at 21:30 GMT - https://t.co/1uM3FCdxuQ
  • We apologize for any inconveniences, but @CVecchioFX "Central Bank Weekly" webinar will not be occurring later today. We will however be covering the #ECB rate decision, hosted by Analyst @JMcQueenFX, starting at 12:45 GMT. Signup for the session here - https://t.co/jNAAUmQ1j8
Australian Dollar Could Topple if the RBA Doesn’t Keep Pace

Australian Dollar Could Topple if the RBA Doesn’t Keep Pace

2010-05-01 02:00:00
John Kicklighter, Chief Currency Strategist
Share:

When defining the fundamental strength of the single currency; it is fair to say that robust growth is the rudder and interest rates are the sails. Growth is no longer so disparate that the Aussie dollar can maintain a significant advantage – at least not one by traders’ standards as they are more short-term focused. The real climb comes with yield. A quick comparison shows the benchmark lending rate in the island country is already 4.25 percent for a considerable premium over its counterparts. However, the real impact is from expectations. Heading into this week’s rate decision, traders are haunted by Governor Glenn Steven’s remark not long ago that the current level of rates is “pretty close” to the normal that the group was targeting. Indeed, this past week’s inflation data showed price pressures are not yet out of line. Looking at economists’ forecasts, there is a heavy majority behind another 25 basis point hike; but the market is less sure. Overnight index swaps (from Credit Suisse) show a much more indecisive 55 percent probability. Should the central bank decide to hold rates, it would be considered a step towards a general shift in approach to policy that would lead to much more time between follow up hikes. If that is the case, it would open the door for other nations and currencies to catch up. This will likely prove so prominent a theme that it will likely overwhelm most trends in underlying risk appetite.

And, while we may be focusing on interest rates through the week, the rest of the calendar should not go overlooked. The docket is fully stocked with notable event risk. Before the central bank decision, proprietary inflation data will refine the argument of future price pressure. Aside from that, we will get a full view of economic activity. From the business sector, activity reports for the factory, service and construction sectors are all due. For the consumer, retail sales for March will round out the quarter. And, finally, the trade balance will offer a look at the ever vital Chinese export connection. - JK

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

DISCLOSURES

News & Analysis at your fingertips.