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
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
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
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
Gold
Bearish
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • A forex trader is strategic, disciplined and always switched on to the markets. Learn how to build an FX mindset here: https://t.co/tB3aAE9BIq https://t.co/xXJAnSMoaF
  • Forex quotes reflect the price of different currencies at any point in time. Since a trader’s profit or loss is determined by movements in price, it is essential to develop a sound understanding of how to read currency pairs. Learn how to read quotes here: https://t.co/CNtqrLeetw https://t.co/1w7E3aiWV1
  • A “PIP” – which stands for Point in Percentage - is the unit of measure used by forex traders to define the smallest change in value between two currencies. Learn how to understand pips in forex here: https://t.co/AfAhmI7kAV https://t.co/JiZPRZzwgo
  • RT @IGSquawk: Crypto update: #Bitcoin 56398.30 -7.34% #Ether 2213.91 -7.42% #BitcoinCash 925.49 -12.24% #EOS 6.8039 -15.98% #Stellar 0.5276…
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkzWwW https://t.co/rJUm1W9wrc
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here: https://t.co/zEEUHZjVIG https://t.co/oZPoyPH2iw
  • Using margin in forex trading is a new concept for many traders, and one that is often misunderstood. Margin is the minimum amount of money required to place a leveraged trade and can be a useful risk management tool. Learn about margin trading here: https://t.co/qZCE5asCzM https://t.co/yN1I9FrfIS
  • There’s a strong correlation between interest rates and forex trading. Forex is ruled by many variables, but the interest rate of the currency is the fundamental factor that prevails above them all. Learn how interest rates impact currency markets here: https://t.co/5l3O9aHQbL https://t.co/DFEfCIl7zF
  • Thin liquidity can concentrate volatility and nowhere is that more evident than with Dogecoin. $DOGEUSD was down as much as 38% today. Watch for heightened bouts of volatility amid quiet risk trends in the week ahead: https://www.dailyfx.com/forex/video/daily_news_report/2021/04/17/Dollar-Outlook-Ties-Into-Key-Data-Rate-Forecasts-and-Even-Dogecoins-Rally-.html https://t.co/JO7O7zUKe9
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here: https://t.co/zEEUHZjVIG https://t.co/Vv3jZNbLWg
USD to Benefit from Faster Growth, AUD Rebound to Fizzle

USD to Benefit from Faster Growth, AUD Rebound to Fizzle

David Song, Strategist

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

10531.17

10565.67

10494.15

-0.31

130.88%

Forex_USD_to_Benefit_from_Faster_Growth_AUD_Rebound_to_Fizzle_body_ScreenShot185.png, USD to Benefit from Faster Growth, AUD Rebound to Fizzle

Chart - Created Using FXCM Marketscope 2.0

Although the Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar) is trading 0.36 percent lower from the open, we’re seeing the 30-minute relative strength index snap back from oversold territory, and the greenback may continue to consolidate ahead of the advance GDP report as the U.S. economy is expected to expand at a faster pace during the first three-months of 2013. As the outlook for growth and inflation improves, the index may carve fresh highs ahead of the next FOMC interest rate decision on May 1, and the bullish sentiment surrounding the reserve currency may gather pace in the month ahead should the central bank scale back its willingness to expand the balance sheet further. In turn, we will continue to buy dips in the USDOLLAR, and the greenback may appreciate throughout 2013 amid the shift in the policy outlook.

Forex_USD_to_Benefit_from_Faster_Growth_AUD_Rebound_to_Fizzle_body_ScreenShot186.png, USD to Benefit from Faster Growth, AUD Rebound to Fizzle

Although the FOMC continues to promote its highly accommodative policy stance, the committee may further discuss the prospects of scaling back its asset purchase program as the U.S. economy is expected to grow an annualized 3.0 percent in the first-quarter. At the same time, Personal Consumption is projected to increase 2.8% following the 1.8% expansion during the last three-months of 2012, and the resilience in private sector spending may instill an improved outlook for the region as it remains one of the leading drivers of growth. As the U.S. gets on a more sustainable path, we should see a growing number of central bank officials adopt a more neutral to hawkish tone for monetary policy, and we may see the FOMC slowly move away from its easing cycle throughout the course of the year as the economic recovery gradually gathers pace. In turn, we continue to look for a more meaningful move at the 10,600 figure, and the bullish flag formation may continue to take shape in the month ahead as the fundamental outlook for the region improves.

Forex_USD_to_Benefit_from_Faster_Growth_AUD_Rebound_to_Fizzle_body_ScreenShot187.png, USD to Benefit from Faster Growth, AUD Rebound to Fizzle

Three of the four components weakened against the greenback, led by a 1.09 percent rally in the British Pound, which was following by a 0.32 percent advance in the Australian dollar. As the AUDUSD find interim support around the 50.0 percent Fibonacci retracement from the 2011 low to high around 1.0230, the pair looks poised to preserve the range-bound price action ahead of the next Reserve Bank of Australia (RBA) interest rate decision on May 7, but we may see the downward trend dating back to 2011 continue to take shape as market participants still see the central bank pushing the benchmark interest rate to a fresh record-low. According to Credit Suisse overnight index swaps, market participants are pricing a 41 percent chance for a 25bp rate cut next month, while the RBA is expected to push the cash rate to 2.50 percent from 3.00 percent in the next 12-months as the region faces an uneven recovery. In turn, we may see the AUDUSD continue to give back the rebound from March (1.0114), and the pair may fall back towards party ahead of the second-half of the year as the fundamental developments coming out of China – Australia’s largest trading partner – continues to highlight the risk for a hard-landing.

--- 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.

Bring the economic calendar to your charts with the DailyFX News App.

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