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
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
Mixed
USD/JPY
Mixed
Gold
Bullish
Oil - US Crude
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
Bitcoin
Mixed
More View more
Real Time News
  • RT @GlobalTimesBiz: After more than two weeks of #China’s efforts to resume business activities, only 30 percent of migrant workers has ret…
  • It seems the markets are riding high, but risk is always lurking around the corner. Consider your escape plan before you find yourself in collapsing market. What are the top havens for different conditions in 2020? Find out from @JohnKicklighter here:https://t.co/1oeXWEsJkb https://t.co/c5YVgs5YKD
  • While Sino-US trade jitters are temporarily abating, China-Swedish trade tensions are rising as a part of a political contagion of growing economic hostilities between nations across the world. Get your market update from @ZabelinDimitri here:https://t.co/F1fVoyzoz5 https://t.co/z49NzgZrXd
  • RT @malkudsi: Natural Gas Eyes Pushing Higher as Support Holds - Nat Gas Technical Analysis More details in the link below: https://t.co/HG…
  • As prices dance around on charts, traders are often looking for reasons to explain price movements; however, the underlying source of price movement boils down to the relationship between supply and demand. Learn more about the forces of S&D on forex here: https://t.co/8LfkLXbj2W https://t.co/swcuwAMGAk
  • How can traders avoid #FOMO in trading? Start by implementing a well-heeled plan taking only four hours per week. Get your insight from @JStanleyFX here: https://t.co/vwUShQPc27 #tradingstyle https://t.co/4adyTWvQ22
  • What are the Market cycles? How are #currencies impacted in these cycles? How can these cycles impact #forextrading patterns? Find out here: https://t.co/ckr2fUOWqW https://t.co/gLJGj1FAOC
  • Central bank independence has several advantages and disadvantages. Find out what they are in-depth with @MartinSEssex here: https://t.co/wVFXbbTxf1 https://t.co/J0MMkVmCUu
  • Get your stock market basics right - what is the stock market and how does stock trading work? Find out here: https://t.co/JfAJLAtlsY https://t.co/ZfPUxHWeiG
  • The Mexican economy contracted for the first time in almost 10 years in 2019, but growth is expected to pick up in 2020 according to its finance minister. Get your $USDMXN market update from @HathornSabin here: https://t.co/gupJdU7WYT https://t.co/mMN8LFb5i5
USD Correction On Tap, Australian Dollar Weighed By Rate Expectations

USD Correction On Tap, Australian Dollar Weighed By Rate Expectations

2011-09-27 15:50:00
David Song, Currency Strategist
Share:

DJ FXCM Dollar Index

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

9847.67

9938.4

9839.31

-0.78

109.71%

USD_Correction_On_Tap_Australian_Dollar_Weighed_By_Rate_Expectations_body_ScreenShot140.png, USD Correction On Tap, Australian Dollar Weighed By Rate Expectations

The Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar) is 0.79% lower on the day after moving 110% of its average true range, and the greenback may continue to give back the advance from earlier this month as market participants move into higher-yielding currencies. However, as the 30-minute relative strength index bounces back from oversold territory, we may see a near-term correction pan out over the next 24-hours of trading, and the index may resume the advance carried over from the previous month as it maintains an upward trend. In turn, we may see the index make another run at 10,000, and the greenback may continue to recoup the losses from the beginning of the year as the uncertainties surrounding the global economy weighs on trader sentiment.

USD_Correction_On_Tap_Australian_Dollar_Weighed_By_Rate_Expectations_body_ScreenShot141.png, USD Correction On Tap, Australian Dollar Weighed By Rate Expectations

As the dollar index holds above the 50.0% Fibonacci retracement around 9828, we may see a small pullback heading into the middle of the week, and the greenback may consolidate over the near-term market participants weigh the outlook for monetary policy. Indeed, recent comments by Fed officials suggest that more will be done to stimulate the economy given the growing support for ‘Operation Twist,’ and the FOMC may keep the door open to conduct another round of quantitative easing in an effort to stem the risk for a double-dip recession. Speculation for additional monetary support may could instill a bearish outlook for the USD, and the near-term reversal in the index may gather pace as the central bank maintains a cautious tone for the world’s largest economy. However, we may see another flight-to-safety as the European debt crisis comes back into focus, and the reserve currency may continue to appreciate over the remainder of the year as the outlook for global growth remains clouded with high uncertainty.

USD_Correction_On_Tap_Australian_Dollar_Weighed_By_Rate_Expectations_body_ScreenShot142.png, USD Correction On Tap, Australian Dollar Weighed By Rate Expectations

Three of the four components gained ground against the greenback, led by a 1.33% advance in the Australian dollar, and the high-yielding currency may continue to appreciate over the next 24-hours of trading as market participants raise their appetite for risk. As the daily RSI bounces back from oversold territory, the rebound in the AUD/USD looks poised to gather pace over the remainder of the week, and the exchange rate may come up against former support (1.0200) as the pair trades back above the 38.2% Fibonacci retracement from the 2010 low to the 2011 high around 0.9930-50. However, market participants still see the Reserve Bank of Australia cutting the benchmark interest rate by nearly 150bp over the next 12-months according to Credit Suisse overnight index swaps, and the high-yielding currency may trade heavy in the coming days as the fundamental outlook for the isle-nation deteriorates.

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.