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.

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
Wall Street
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
More View more
Real Time News
  • The South African rand has continued its depreciation against the U.S. dollar this week after the Evergrande default probability remains. Get your $USDZAR market update from @WVenketas here:https://t.co/24dVHrkMDG https://t.co/aNNU5qnha6
  • What is more concerning than just US equities down or global equities being down is that 'risk' across the board is under serious pressure. The more intense and persistent this trend, the greater the risk it turns self-sustaining https://t.co/KPblFpeaqf
  • It's rare event where the buy-and-hold, long volatility crowd do a victory lap and say their formal 'I knew it'. The $VXX short-term volatility ETF is up sharply on heavy volume. One of my 'early warning' signals https://t.co/5XqfJJTqR3
  • Coinbase will drop its plans to launch its crypto lending program that was under regulatory scrutiny
  • $SPX Daily- Levels Discussed in today's Webinar. . . https://t.co/veixIAiLGT
  • Canadian Dollar Price Forecast: USD/CAD Spikes, Pulls Back - Loonie Levels https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/daily_fundamentals/2021/09/20/Canadian-Dollar-Price-Forecast-USD-CAD-USDCAD-Spikes-Pulls-Back-Loonie-Levels.html $USDCAD https://t.co/x94xr5DiNe
  • Technical Setups: $USD Majors, #Gold, #Oil, $SPX & #Bitcoin ahead of #FOMC (Webinar Archive) - https://t.co/nYxIJk2k8h
  • Airline stocks retracing losses, some already in positive territory, despite the large sell-off in the market. News that the US will overhaul its COVID-19 travel rules and lift some restrictions are good news for the airline industry $JETS $UAL $AAL $ALK
  • The S&P 500 have taken a clear dive to start the week and fear of full risk aversion is gaining traction. DailyFX's @JohnKicklighter discusses what to expect in the markets this week! https://t.co/Mlyp5Tbdax
  • $USD still pulling back from resistance. 93.43 was the Q1 swing high, still playing a role in $DXY support potential around prior res, ~93.20 https://t.co/3TnlEu0yZX https://t.co/ub8o4D8NhW
Australian Dollar Data Drought Will Leave Coronavirus In Charge

Australian Dollar Data Drought Will Leave Coronavirus In Charge

David Cottle, Analyst
AUDUSD Chart

Fundamental Australian Dollar Forecast: Bearish

  • The domestic Australian data slate is quite bare this week
  • Even were it full, the numbers would need to go some to push coronavirus out of the spotlight
  • The Aussie’s links to global growth will keep it pressured

No news is highly unlikely to be good news for battered Australian Dollar bulls in the coming week. The currency faces a lack of scheduled economic data or central bank activity, but that lull is only more likely to leave the trading field wide open to the coronavirus story.

The Australian Dollar has already been smashed by the contagion’s horrible spread. As perhaps the major currency most correlated to global growth expectations its pain is unsurprising. Moreover the virus’ impact feeds back to the Australian economy in any number of ways. The country’s huge raw-material export links to China along with its continental size and economic reliance on long-distance travel and tourism are merely the two most obvious ones.

Another became clear in the past week as the Reserve Bank of Australia cut interest rates to a new record low for the second time this month. This move not only stripped the currency of what little monetary support it had, it also walloped Australian lenders and saw the ASX 200 equity benchmark fall even further.

The Australian Economy Has Not Rolled Over. Yet.

There remain glimmers of hope. Australia’s formidable job creation machine continues to rev, with record numbers employed according to February’s data. Of course, these numbers predate the worst impact so far of the virus on global markets and similar strength ahead looks most unlikely. That said, base rates are now down to the 0.25% level which the RBA has heavily suggested in the past is some sort of natural floor. The coronavirus may have changed thinking here to some extent but, all the same, the bar to still-lower borrowing costs may be higher than the market now assumes, with fiscal policy probably left to do most of the stimulus heavy lifting from here.

In the end though, that’s just nuance, and the global market is not exactly big on that right now. For the near-term, coronavirus will drive and that’s likely to mean yet more bad news for those Australian Dollar bulls as they contemplate a week with few other distractions.

AUD/USD Monthly Price Chart

Australian Dollar Resources for Traders

Whether you’re new to trading or an old hand DailyFX has plenty of resources to help you. There’s our trading sentiment indicator which shows you live how IG clients are positioned right now. We also hold educational and analytical webinars and offer trading guides, with one specifically aimed at those new to foreign exchange markets. There’s also a Bitcoin guide. Be sure to make the most of them all. They were written by our seasoned trading experts and they’re all free.

--- Written by David Cottle, DailyFX Research

Follow David on Twitter@DavidCottleFX or use the Comments section below to get in touch!

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

DISCLOSURES