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
Mixed
USD/JPY
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
Gold
Bearish
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
Real Time News
  • #Crypto update: $BTC -2.9% $BCH -6.3% $LTC -5.5% $XRP -4.9% $ETH -3.2%
  • US Recession Watch: Recession Odds Rekindled as Coronavirus Festers -via @DailyFX https://www.dailyfx.com/forex/fundamental/article/special_report/2020/02/24/us-recession-watch-recession-odds-rekindled-as-coronavirus-festers.html
  • $USDMXN just notched its highest reading since December 11 following a 3.5% surge in the US Dollar relative to the Mexican Peso over the last four trading sessions. Get your market update from @RichDvorakFX here: https://t.co/POi477sNJD https://t.co/ROlw5QKQhq
  • Fed's Mester says US monetary policy is well calibrated, does not support a rate cut at this time $DXY
  • The price... the price is always right. Sometimes the changes just seem to come from outta nowhere https://t.co/myouqWeEKb https://t.co/D8uuvP5VH0
  • Commodities Update: As of 19:00, these are your best and worst performers based on the London trading schedule: Silver: 1.20% Gold: 0.82% Oil - US Crude: 0.08% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/ckDMoZWncE
  • BOE Chief Economist Haldane: Does not see overstretched balance sheets or asset bubbles generally around the world, balance sheets are in better shape than 10 years ago $GBPUSD $FTSE
  • Saudi Aramco CEO says he is confident oil demand will improve in second half of year, particularly in China #OOTT #crudeoil
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.81%, while traders in USD/CAD are at opposite extremes with 70.99%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/9WJ8wfNZ3p
  • @RichDvorakFX @BernieSanders @PredictIt Feel the Bern!!!
USD Maintains Downward Trend, Aussie Supported By RBA

USD Maintains Downward Trend, Aussie Supported By RBA

2011-09-07 15:28:00
David Song, Currency Strategist
Share:

DJ FXCM Dollar Index

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

9590.40

9629.91

9550.45

-0.51

105.30%

USD_Maintains_Downward_Trend_Aussie_Supported_By_RBA_body_ScreenShot048.png, USD Maintains Downward Trend, Aussie Supported By RBA

The Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar) is 0.51% lower on the day after moving 105% of its average true range, and its seems as though the greenback has carved out a top around 9650, which could lead the reserve currency to threaten the upward trendline from the beginning of the month. If price action work its way towards the lower Bollinger Band around 9571, the reversal from 9653 may gather pace over the remainder of the week, and the greenback may give back the advance from earlier this month as market participants increase their appetite for risk. However, we may see the USD regain its footing as the relative strength index continues to come off of the lows, and the near-term rally may gather pace as the index continues to mark higher highs paired with higher lows.

USD_Maintains_Downward_Trend_Aussie_Supported_By_RBA_body_ScreenShot049.png, USD Maintains Downward Trend, Aussie Supported By RBA

The Fed’s Beige Book is likely to highlight the ongoing weakness in the world’s largest economy, and the central bank may show an increased willingness to expand monetary policy further in order to combat the slowing recovery. In light of the recent developments, we may see the central bank continue to curb its outlook for growth and inflation, and the general consensus amongst the 12 districts could denote a heightening risk for a double-dip recession as private sector activity deteriorates. In turn, the FOMC may adopt a range of policy tools to stimulate the ailing economy at the next rate decision on September 21, and the committee may reiterate its pledge to carry the zero interest rate policy well into 2013 in order to encourage a sustainable recovery. As the near-term rally fails to produce a test of the 78.6% Fibonacci retracement around 9670, it seem as though we will see the downward trend continue to pan out over the near-term, and the USD may threaten the rebound from earlier this month as Fed extends its easing cycle.

USD_Maintains_Downward_Trend_Aussie_Supported_By_RBA_body_ScreenShot050.png, USD Maintains Downward Trend, Aussie Supported By RBA

All four components advanced against the USD, led by a 1.19% advance in the Australian dollar, and the high-yielding currency may continue to push higher over the near-term as the central bank talks down speculation for lower borrowing costs. Indeed, Reserve Bank of Australia Governor Glenn Stevens endorsed a wait-and-see approach for the remainder of the year after the 2Q GDP report topped market expectations, but went held a cautious outlook for the isle-nation as the fundamental outlook for the global economy remains clouded with high uncertainty. Moreover, the central bank head softened his hawkish tone for monetary policy, noting that the ongoing weakness within the real economy may dampen price growth, and reiterated that the economic recovery appears to be weaker than initially expected while speaking in Perth. In light of the recent comments, it seems as though the RBA will keep the benchmark interest rate at 4.75% over the coming months, but the central bank may look to abandon its ‘mildly restrictive’ policy in order to balance the risks for the region.

Join us to discuss the outlook for the major currencies on the DailyFXForums

To discuss this report contact David Song, Currency Analyst: dsong@dailyfx.com

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

DISCLOSURES

News & Analysis at your fingertips.