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
Bearish
USD/JPY
Bearish
Gold
Bullish
Oil - US Crude
Bearish
Bitcoin
Bearish
More View more
Real Time News
  • The Australian Dollar and New Zealand Dollar tend to rise with stocks. They have recently fallen despite gains in the #SP500. What does this mean for $AUDUSD and $NZDUSD ahead? #AUD #NZD #RBA #RBNZ - https://www.dailyfx.com/forex/fundamental/article/special_report/2020/01/17/AUDUSD-NZDUSD-Outlook-Looks-Past-Stocks-to-Rate-Cut-Bets.html?CHID=9&QPID=917702 https://t.co/ddf2fV7Kyl
  • A few snippets from today's commentary. Check out the link below for the full story (via @DailyFX). https://t.co/I31tuq764r https://t.co/x0BaiOFA1P
  • 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/e2YrN3dBrl
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 98.00%, while traders in France 40 are at opposite extremes with 79.59%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/UL7hqSD2Ki
  • US Dollar Forecast: $USD Lacking Impetus Ahead of Consumer Sentiment #Forex traders shift focus away from US-China trade deal headlines - perhaps toward the monthly release of #ConsumerSentiment data for volatility and clues on the Greenback's next move https://www.dailyfx.com/forex/fundamental/us_dollar_index/usd_trading_today/2020/01/16/us-dollar-forecast-usd-lacking-impetus-ahead-of-consumer-sentiment.html
  • Forex Update: As of 05:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.11% 🇦🇺AUD: -0.02% 🇯🇵JPY: -0.03% 🇨🇭CHF: -0.05% 🇬🇧GBP: -0.06% 🇨🇦CAD: -0.07% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/Kxcb9EtIWb
  • Indices Update: As of 05:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.45% France 40: 0.26% Wall Street: 0.07% US 500: 0.00% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/I5YIsKQAog
  • 🇯🇵 JPY Tertiary Industry Index (MoM) (NOV), Actual: 1.3% Expected: 1.0% Previous: -5.2% https://www.dailyfx.com/economic-calendar#2020-01-17
  • The $JPY has weakened as a bounce-back in risk appetite saps haven-asset demand. However, the old uptrend line still provides clear resistance. Get your market update from @DavidCottleFX HERE:https://t.co/IMhgQ9jbF9 https://t.co/I7087olftk
  • Heads Up:🇯🇵 JPY Tertiary Industry Index (MoM) (NOV) due at 04:30 GMT (15min), Actual: N/A Expected: 1.0% Previous: -4.6% https://www.dailyfx.com/economic-calendar#2020-01-17
Australian Dollar to Weaken Further Amid Heightening Growth Fears

Australian Dollar to Weaken Further Amid Heightening Growth Fears

2012-03-10 00:31:00
David Song, Currency Strategist
Share:
Australian_Dollar_to_Weaken_Further_Amid_Heightening_Growth_Fears_body_Picture_5.png, Australian Dollar to Weaken Further Amid Heightening Growth FearsAustralian_Dollar_to_Weaken_Further_Amid_Heightening_Growth_Fears_body_Picture_6.png, Australian Dollar to Weaken Further Amid Heightening Growth Fears

Fundamental Forecast for Australian Dollar: Bearish

The Australia dollar came under pressure as the Reserve Bank of Australia held a dovish tone for monetary policy, and the high-yielding currency may face additional headwinds in the following week as the fundamental outlook for the $1T economy deteriorates. Although the RBA held the cash rate at 4.25%, Governor Glenn Stevens kept the door open to lower the benchmark interest rate further, and we may see the AUDUSD continue to give back the advance from earlier this year as interest rate expectations falter.

According to Credit Suisse overnight index swaps, market participants now see at least 50bp worth of rate cuts over the next 12-months, and investors may increase their call for lower borrowing costs as the slowdown in economic activity dampens the outlook for inflation. Indeed, the weaker-than-expected 4Q GDP report strengthens the case for additional monetary support, and we may see the RBA ease policy further during the first-half of the year as the central bank aims to encourage a sustainable recovery. With China – Australia’s largest trading partner – cutting its 2012 growth forecast to an annualized rate of 7.5%, weakening trade conditions may prompt Governor Stevens to scale back the fundamental assessment for the region, and we may see the central bank show a greater willingness to lower the cash rate further in an effort to shield the economy. Nevertheless, as the economic docket for the following week is expected to highlight the ongoing weakness in the private sector, a slew of dismal developments could fuel the reversal in the AUDUSD, and we may see the exchange rate track lower throughout the remainder of the month as it struggles to maintain the range carried over from the previous month.

As the AUDUSD finally slips below 1.0600, the downward trend in the relative strength index reinforces our bearish call for the aussie-dollar, and we should see the pair continue to give back the rally from earlier this year as it carves out a lower top in March. In turn, the AUDUSD may come up against the 200-Day SMA (1.0411) to test for near-term support, but a break below the moving average would expose the 23.6% Fibonacci retracement from the 2010 low to the 2011 high around 1.0350-60. - DS

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

DISCLOSURES

News & Analysis at your fingertips.