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
Bullish
Oil - US Crude
Bearish
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
Bullish
GBP/USD
Bullish
USD/JPY
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
  • Pfizer/BioNTech Covid-19 vaccine approved for use in the UK - BBG
  • Heads Up:🇨🇭 Inflation Rate YoY (NOV) due at 07:30 GMT (15min) Expected: -0.5% Previous: -0.6% https://www.dailyfx.com/economic-calendar#2020-12-02
  • 🇩🇪 Retail Sales YoY (OCT) Actual: 8.2% Expected: 5.9% Previous: 6.5% https://www.dailyfx.com/economic-calendar#2020-12-02
  • Heads Up:🇩🇪 Retail Sales YoY (OCT) due at 07:00 GMT (15min) Expected: 5.9% Previous: 6.5% https://www.dailyfx.com/economic-calendar#2020-12-02
  • Wall Street Futures Update: Dow Jones (-0.406%) S&P 500 (-0.246%) Nasdaq 100 (-0.122%) [delayed] -BBG
  • Seems there is some surprise on reports (from NYT) that President-Elect Biden will not reverse the Phase One trade deal and tariffs on China. The international mood towards China is particularly cool. Now, relations with Canada and Mexico or the EU over Airbus is another matter
  • The bull flag pattern is a great pattern to add to a forex trader's technical arsenal. Explosive moves are often associated with the bull flag. Learn more about the bull flag pattern here: https://t.co/yOEvLjKnct https://t.co/EyHrHRYZfA
  • IGCS hints that #gold may reverse higher as the #SP500 aims for new highs. Things are looking a little bit more choppy for the growth-linked Australian Dollar. Check out my full report with webinar recording here - https://www.dailyfx.com/forex/technical/article/special_report/2020/12/02/Gold-Price-SP-500-AUDUSD-Forecast-How-Might-Retail-Traders-Behave-Next.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/8ueRCILgdY
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 93.48%, while traders in EUR/USD are at opposite extremes with 76.40%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/cVNpB5eeUn
  • President-Elect Joe Biden: Says won't immediately remove China phase-one tariffs, want to conduct full review of existing deal -BBG citing NYT
USDOLLAR Eyes Fresh Highs- RBA Easing Cycle to Drag AUD Lower

USDOLLAR Eyes Fresh Highs- RBA Easing Cycle to Drag AUD Lower

2013-05-07 16:20:00
David Song, Strategist
Share:

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

10537.53

10543.7

10501.95

0.25

82.09%

Forex_USDOLLAR_Eyes_Fresh_Highs-_RBA_Easing_Cycle_to_Drag_AUD_Lower_body_ScreenShot212.png, USDOLLAR Eyes Fresh Highs- RBA Easing Cycle to Drag AUD Lower

Chart - Created Using FXCM Marketscope 2.0

The Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar) is 0.25 percent higher from the open after moving 82 percent of its average true range, and the V-shaped rebound may continue to take shape as the economic docket is expected to show U.S. Consumer Credit increasing another $15.6B in March. As the fundamental developments coming out of the world’s largest economy encourages an improved outlook for growth, the upward trend in the index should continue to pan out in the days ahead, and the greenback may make another run at the 10,600 figure should the data dampen speculation for more Fed support. However, as the 30-minute relative strength index comes up against overbought territory, we may see a small pullback over the next 24-hours of trading, and we will look to buy dips in the reserve currency as the bullish sentiment gathers pace.

Forex_USDOLLAR_Eyes_Fresh_Highs-_RBA_Easing_Cycle_to_Drag_AUD_Lower_body_ScreenShot213.png, USDOLLAR Eyes Fresh Highs- RBA Easing Cycle to Drag AUD Lower

In light of the ongoing improvements in the world’s largest economy, Richmond Fed President Jeffrey Lacker argued that ‘the benefit-cost trade-off associated with further monetary stimulus does not look promising,’ and went onto say that ‘further increases in the size of our balance sheet raise the risks associated with the ‘exit process’ when it’s time to withdraw stimulus.’ As the U.S. gets on a more sustainable path, we may see a growing number of Fed officials speak out against the highly accommodative policy stance, and the FOMC may start to discuss a tentative exit strategy in the second-half of the year as growth prospects improve. As we’re still watching the bullish flag pattern take shape, with the 10,400 figure holding up as support, we may see a more meaningful run at 10,600, and the dollar remains poised to mark fresh highs over the near to medium-term amid the shift in the policy outlook.

Forex_USDOLLAR_Eyes_Fresh_Highs-_RBA_Easing_Cycle_to_Drag_AUD_Lower_body_ScreenShot214.png, USDOLLAR Eyes Fresh Highs- RBA Easing Cycle to Drag AUD Lower

Two of the four components weakened against the greenback, led by a 0.88 percent decline in the Australian dollar, and the AUDUSD remains poised to weaken further as the Reserve Bank of Australia (RBA) continues to embark on its easing cycle. Although the RBA pushed the benchmark interest rate to a fresh record-low of 2.75 percent, Governor Glenn Stevens remains poised to reduce borrowing costs further as the $1T economy remains ‘a bit below trend,’ and the Australian dollar should continue to give back the rebound from 2012 (0.9580) as interest rate expectations remain tilted to the downside. As the downward trend in the AUDUSD continues to take shape, we will look to sell rallies in the exchange rate, and the aussie may persistently underperform against its major counterparts as the RBA retains a dovish tone for monetary policy.

--- 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