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
Oil - US Crude
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
More View more
Real Time News
  • Further your forex knowledge and gain informed analyses from industry leaders with our free guides, available today. Download the Q3 guide:https://t.co/7G7pWntiyY https://t.co/w56ra8ZG9y
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 93.58%, while traders in Wall Street are at opposite extremes with 73.57%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/o0D0Ngucod
  • USD/JPY attempts to retrace the decline following the semi-annual testimony with Fed Chairman Jerome Powell amid a rebound in longer-dated US Treasury yields. Get your market update from @DavidJSong here:https://t.co/Uos1L1Z4wG https://t.co/pZhubVlhjs
  • Commodities Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.02% Gold: -0.15% Silver: -0.83% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/4gIoNck16b
  • The US Dollar is broadly stronger on the session with the latest flash PMI report from @IHSMarkit underscoring inflation pressures ahead of next week's Fed announcement. $DXY facing psychological resistance at the 93.00-handle, though. Link to Analysis - https://www.dailyfx.com/forex/market_alert/2021/07/23/us-dollar-firms-as-pmi-data-echoes-inflation-risk-cue-the-fed.html https://t.co/SzMzzxoYzN
  • Forex Update: As of 16:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.04% 🇪🇺EUR: -0.05% 🇬🇧GBP: -0.10% 🇨🇭CHF: -0.18% 🇦🇺AUD: -0.18% 🇯🇵JPY: -0.31% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/RykiRciAsZ
  • ECB's Weidmann: - New ECB goal does not mean there will be markedly higher inflation
  • ECB's Weidmann: - I expect inflation rates in Germany to rise to 5% by the end of 2021 - Governing council believes that expansive monetary policy is acceptable at the moment
  • Indices Update: As of 16:00, these are your best and worst performers based on the London trading schedule: US 500: 0.74% Wall Street: 0.51% Germany 30: -0.03% France 40: -0.08% FTSE 100: -0.12% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/iXJHlexTlA
  • USD/MXN trades directionless, oscillating between small gains and losses, near the 20.15 area. Get your $USDMXN market update from @DColmanFX here:https://t.co/FFr3rlGh6n https://t.co/7tniccl9S8
Forex: USDOLLAR Threatens Key Support- AUD Struggles Ahead Of RBA

Forex: USDOLLAR Threatens Key Support- AUD Struggles Ahead Of RBA

David Song, Strategist

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

9955.46

9993.43

9951.31

-0.37

115.50%

Forex_USDOLLAR_Threatens_Key_Support-_AUD_Struggles_Ahead_Of_RBA_body_ScreenShot093.png, Forex: USDOLLAR Threatens Key Support- AUD Struggles Ahead Of RBA

Although the Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar) is 0.37 percent lower from the open, the rebound in the 30-minute relative strength index should prop up the greenback over the next 24-hours of trading, and we will look for a more meaningful move to the upside once the oscillator breaks out of the bearish trend. With five major central bank interest rate decisions on tap for this week, headlines coming out of the G10 countries may spark whipsaw-like price action ahead of the highly anticipated Non-Farm Payrolls report due out on Friday, but the dollar may struggle to hold its ground ahead of the development as job growth is expected to expand at a slower pace in November. Nevertheless, the headline driven-market may continue to prop up the USD as currency traders scale back their appetite for risk, and we may see a flight to safety in the coming days as the major central banks across the globe strike a more cautious tone for the world economy.

Forex_USDOLLAR_Threatens_Key_Support-_AUD_Struggles_Ahead_Of_RBA_body_ScreenShot094.png, Forex: USDOLLAR Threatens Key Support- AUD Struggles Ahead Of RBA

Indeed, Fed doves continued to make a case for more easing, with Minneapolis Fed President Narayana Kocherlakota arguing that monetary policy remains ‘too tight,’ while Chicago Fed President Charles Evans stated that ‘more accommodation would help lead to better economic outcomes’ amid the ongoing slack within the world’s largest economy. As the Federal Open Market Committee keeps the door open to expand its balance sheet further, the central bank may see scope to increase its open-ended asset purchase program beyond the $40B monthly limit, but we may the board stick to the sidelines in December as the region gets on a more sustainable path. As the USDOLLAR holds above the 61.8 percent Fibonacci retracement around 9,949, the upward trending channel from back in September may continue to take shape over the remainder of the year, but we will scale back our bullish forecast for the greenback should we see a break and a close below the 50-Day SMA (9,939).

Forex_USDOLLAR_Threatens_Key_Support-_AUD_Struggles_Ahead_Of_RBA_body_ScreenShot095.png, Forex: USDOLLAR Threatens Key Support- AUD Struggles Ahead Of RBA

The greenback weakened across the board, led by a 0. 62 advance in the Euro, while the Australian dollar is struggling to hold its ground ahead of the Reserve Bank of Australia interest rate decision as the central bank is widely expected to show a greater willingness to lower the benchmark interest rate further. Although market participants see the RBA keeping the cash rate at 3.25%, central bank Governor Glenn Stevens may hint at another rate cut during the first-half of 2013 in an effort to shield the $1T economy from the slowdown in global trade. As China – Australia’s largest trading partner – remains at risk for a ‘hard landing,’ we should see the RBA continue to embark on its easing cycle over the coming months, and the weakening outlook for interest rate expectations is likely to produce a more meaningful decline in the exchange rate as the AUDUSD maintains the downward trend from 2011. As the aussie-dollar carves out a lower top coming into December, we may see the pair give back the rebound from 1.0148, and the bearish sentiment surrounding the higher-yielding currency may gather pace in the year ahead as the region faces a slowing recovery.

--- Written by David Song, Currency Analyst

To contact David, e-mail dsong@dailyfx.com. Follow me on Twitter at @DavidJSong.

To be added to David's e-mail distribution list, please follow this link.

New to FX? Watch this Video

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

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

DISCLOSURES