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
Bearish
Oil - US Crude
Bullish
Wall Street
Bearish
Gold
Bearish
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • $USDCAD, $AUDUSD Near-term Technical Setups - https://t.co/HOOdZz6IIF https://t.co/DRiqmlKXHg
  • Commodities Update: As of 19:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: -0.11% Gold: -0.91% Silver: -3.20% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/u41nMRKgOj
  • A pretty clean break from $SPX and other risk-sensitive assets are following along. As Hans Landa said in Inglorious Basterds: "Ooooooo. That's a Bingo" https://t.co/fLqS3kL8li
  • US Dollar Index reaches a multi-month high as markets strike a risk-off tone $USD $DXY https://t.co/m8AdjHztFX
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 93.13%, while traders in GBP/JPY are at opposite extremes with 70.14%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/GgwsfrU5lz
  • EUR/USD sheds 40-pips in a matter of minutes as the US Dollar strengthens broadly. Get your $EURUSD market update from @RichDvorakFX here:https://t.co/wIlo9Tbp7A https://t.co/It5iIFhMmL
  • Well, I don't think Powell will temper interest/concern around central banks having to pullback in the foreseeable future. Both 'taper tantrum' and 'operation twist' search interest charging higher: https://t.co/NK17S328F3
  • Indices Update: As of 19:00, these are your best and worst performers based on the London trading schedule: Germany 30: -0.86% FTSE 100: -1.20% France 40: -1.27% Wall Street: -2.32% US 500: -2.53% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/KjNr7ongtX
  • Nasdaq now down over 3% today, confirming 10% correction territory. $QQQ
  • $USDCHF has continued to strength today, now above the 0.9280 level, trading around the highs hit in late September. The pair has performed strongly since mid February as US rates have continued higher, rising from 0.8900 by nearly 400 pips to its current levels. $USD $CHF https://t.co/qrHY8Sy2sf
Australian Dollar Facing Few Hurdles to Continued Recovery

Australian Dollar Facing Few Hurdles to Continued Recovery

Ilya Spivak, Head Strategist, APAC
Australian Dollar Facing Few Hurdles to Continued Recovery

Fundamental Forecast for the Australian Dollar: Neutral

  • Australian Dollar Sees Few Hurdles in the Way of Corrective Bounce
  • Upbeat US Data May Boost Fed Rate Hike Bets, Cap Aussie Upside
  • Find Key Turning Points for the Australian Dollar with DailyFX SSI

The Australian Dollar emerged stronger following last week’s deluge of event risk. A markedly thinner docket in the days ahead offers relatively few stumbling blocks to derail the currency’s momentum, hinting at continued recovery for the time being.

The stars aligned for an Aussie recovery early last week as the RBA delivered its monetary policy announcement. While Glenn Stevens and company maintained a broadly neutral bias, the policy statement accompanying the rate decision was conspicuously altered to remove calls for further currency depreciation which had become ubiquitous in recent years.

Momentum found added fuel as the RBA delivered its monthly Monetary Policy Statement. Officials upgraded their outlook for inflation and stressed that rate cuts from earlier in the year were still working their way into the broader economy, undermining the case for further easing in the near term. July’s jobs data also looked supportive with a strong upside surprise on the headline reading (although the markets seemed dubious of some underlying numbers).

Finally, mildly disappointing payrolls numbers out of the US helped on the external front, undermining the case for a September interest rate hike. This brandished the Aussie’s attraction as a higher-yielding alternative, taking the currency to the highest daily close in two weeks against its US counterpart.

Looking ahead, US news-flow represents the most potent risk for an Australian Dollar recovery. Retail Sales figures as well as the University of Michigan Consumer Confidence gauge are on tap. Realized US economic data outcomes have broadly tended to outperform relative to consensus forecasts since mid-May, opening the door for upbeat surprises that may re-energize Fed tightening bets and weigh on the Aussie.

A handful of Chinese releases is also noteworthy. July’s Retail Sales and Industrial Production numbers are due to cross the wires. As with the US, data flow out of the behemoth East Asian economy has improved in recent months. At minimum, this hints that the probability for particularly dour results that raise concerns about negative spillover to Australia is comparatively low relative to the alternative.

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

DISCLOSURES