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
EUR/USD
Bullish
Oil - US Crude
Bullish
Wall Street
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
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
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • There are many different types of forex orders, which traders use to manage their trades. While these may vary between different brokers, there tends to be several basic FX order types all brokers accept. Learn about different FX order types here: https://t.co/lIJdiz4xSz https://t.co/Xi9QU3ADPF
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out: https://t.co/td5WA4hCZC https://t.co/cQwbeZ6Feq
  • #Oil prices saw a reprieve to the recent selling pressure but remain at risk while below downtrend resistance. Here are the levels that matter on the #WTI technical chart. Get your #commodities update from @MBForex here: https://t.co/CcXsF3JCMH https://t.co/RUmS1cX52v
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/5uSWKoLkd6 https://t.co/boEI8RuQdC
  • The growth-linked New Zealand Dollar may rise on the upcoming #RBNZ rate decision following rosy economic data. However, downside potential in the S&P 500 could offset $NZDUSD gains. Get your #currencies update from @ddubrovskyFX here: https://t.co/LfCe6C6G3P https://t.co/kUeBxxeaEf
  • It was a quiet week in Aussie as $AUDUSD put in its second consecutive week of indecision. But taking a more granular look highlights the potential for a reversal scenario. Get your #currencies update from @JStanleyFX here: https://t.co/PPK20nubAf https://t.co/0nfmRRFNnz
  • The S&P 500 pushed the market's comfort with a head-and-shoulders pattern through Friday's close. What should we look for in technical patterns, overlapping fundamental tides and speculative positioning for the likes of $EURUSD next week? https://www.dailyfx.com/forex/video/daily_news_report/2020/09/19/EURUSD-Pressure-Building-while-Anxious-Traders-Weigh-Did-SP-500-Break.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/lgVJVwi8th
  • Sterling remains trapped by overarching fundamentals drivers and both $GBPUSD and $EURGBP are going to have to wait until the Brexit dust settles. Get your #currencies update from @nickcawley1 here: https://t.co/vF1K1cy0nd https://t.co/NSA7qiQihc
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here:https://t.co/1oygcFMFNs https://t.co/d9EmTOHyTv
  • Traders tend to overcomplicate things when they’re starting out in the forex market. This fact is unfortunate but undeniably true.Simplify your trading strategy with these four indicators here:https://t.co/A4dqGMPylo https://t.co/xqbUxwWgTZ
Fresh USDOLLAR Highs on Tap- AUD to Threaten New Lows on RBA

Fresh USDOLLAR Highs on Tap- AUD to Threaten New Lows on RBA

2013-06-28 15:15:00
David Song, Strategist
Share:

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

10851.74

10856

10780.25

0.64

88.22%

Forex_Fresh_USDOLLAR_Highs_on_Tap-_AUD_to_Threaten_New_Lows_on_RBA_body_ScreenShot103.png, Fresh USDOLLAR Highs on Tap- AUD to Threaten New Lows on RBA

Chart - Created Using FXCM Marketscope 2.0

The Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar) is trading 0.64 percent higher on the last trading day of June as the final reading for the U. of Michigan Confidence survey showed an upward revision to 84.1 from an initial forecast of 82.7, and the bullish sentiment surrounding the greenback should gather pace in the month ahead as the fundamental outlook for the world’s largest economy improves. As the reserve currency clears the 23.6 percent Fibonacci retracement around 10,832, we anticipate a more meaningful move at the 10,900 handle, but we may see a pullback going into to July as the 30-minute relative strength index falls back from a high of 72. Nevertheless, the short-term correction may provide a buying opportunity in the week ahead, and we will retail a bullish outlook for the USD amid the growing discussion to taper the Fed’s asset-purchase program.

Forex_Fresh_USDOLLAR_Highs_on_Tap-_AUD_to_Threaten_New_Lows_on_RBA_body_ScreenShot104.png, Fresh USDOLLAR Highs on Tap- AUD to Threaten New Lows on RBA

In light of growing arguments to scale back on quantitative easing, Fed Governor Jeremy Stein showed a greater willingness taper the non-standard measure amid the ‘substantial progress’ in the labor market, while Richmond Fed President Jeffery Lacker warned further bond purchases will increase the risk associated with the central bank’s exit strategy as the highly accommodative policy stance fuels risk-taking behavior. As a growing number of Fed officials see scope to start winding down QE, the shift in the policy outlook favors further USDOLLAR strength in the second-half of the year, and we should see the reserve currency continue to carve a series of higher highs paired with higher lows as the fundamental developments coming out of the U.S. economy highlights an improved outlook for growth. However, as market participants turn their attention to the highly anticipated Non-Farm Payrolls report on tap for next week, we may see the greenback consolidate ahead of the key print, and we will keep a close eye on the headline as well as the jobless figure as they’re expected to show further improvements in the labor market.

Forex_Fresh_USDOLLAR_Highs_on_Tap-_AUD_to_Threaten_New_Lows_on_RBA_body_ScreenShot105.png, Fresh USDOLLAR Highs on Tap- AUD to Threaten New Lows on RBA

The greenback rallied across the board, led by a 1.30 percent decline in the Australian dollar, and the higher-yielding currency may face additional headwinds in the week ahead should the Reserve Bank of Australia (RBA) show a greater willingness to ease monetary policy further. Indeed, Governor Glenn Stevens may strike a more dovish tone at the July 2 meeting amid the threat of a banking crisis in China – Australia’s largest trading partner – and the central bank may show a greater willingness to push the benchmark interest rate to a fresh record-low in an effort to further insulate the $1T economy. As the AUDUSD slips to a fresh yearly low of 0.9132, the bearish trend may continue to take shape next month, and the pair may remain limited on the topside 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