Skip to Content
News & Analysis at your fingertips.
Free Trading Guides
Subscribe
Please try again
Select

Live Webinar Events

0

Economic Calendar Events

0

Notify me about

Live Webinar Events
Economic Calendar Events

H

High

M

Medium

L

Low
More View More
AUD/USD Preserves Descending Channel Formation Ahead of RBA Minutes

AUD/USD Preserves Descending Channel Formation Ahead of RBA Minutes

Talking Points:

- AUD/USD Preserves Descending Channel Ahead of RBA Minutes.

- USD/CAD Eyes Key Resistance- Canada Retail Sales, Consumer Price Index in Focus.

- USDOLLAR Continues to Carve Bearish Pattern as Mixed U.S. Data Continues.

For more updates, sign up for David's e-mail distribution list.

AUD/USD

AUD/USD Daily Chart

Chart - Created Using FXCM Marketscope 2.0

  • Despite the better-than-expected Australia Employment report, AUD/USD looks poised to preserve the downward trending channel carried over from the previous month, with the failure to test the opening monthly-range highlighting a bearish outlook for the pair.
  • With the Reserve Bank of Australia (RBA) scheduled to release its policy meeting minutes next week, a greater willingness to implement additional rate cuts are likely to produce near-term headwinds for the higher-yielding currency amid the deviating outlook for monetary policy.
  • Despite the bearish formation, DailyFX Speculative Sentiment Index (SSI) shows retail crowd remains net-long AUD/USD since May 15, but the ratio remains off of recent extremes as it sits at +1.76, with 64% of traders long.

USD/CAD

USD/CAD Daily Chart
  • USD/CAD appears to be on its way to test key resistance around 1.3460 (61.8% retracement) as the Relative Strength Index (RSI) threatens the downward trend from back in July; closing price above 1.3320 (38.2% expansion) may highlight a more bullish outlook for the pair especially as it pushes to fresh monthly highs.
  • Despite expectations for another 0.3% expansion in Canada Retail Sales, a slowdown in the core Consumer Price Index (CPI) accompanied by a further decline in crude oil may dampen the appeal of the loonie as Bank of Canada (BoC) continues to watch the real economy rebalance to weaker energy prices.
  • As the pair appears to be breaking out of a bull-flag formation, topside targets remain in focus with the next region of interest coming in around 1.3430 (50% expansion) to 1.3460 (61.8% retracement).

Join DailyFX on Demand for Real-Time SSI Updates Across the Majors!

USDOLLAR(Ticker: USDollar):

IndexLastHighLowDaily Change (%)Daily Range (% of ATR)
DJ-FXCM Dollar Index12164.2412166.7912128.380.2378.08%
USDOLLAR Daily Chart

Chart - Created Using FXCM Marketscope 2.0

  • Despite the ongoing weakness in U.S. Retail Sales, Dow Jones-FXCM U.S. Dollar has bounced back from a fresh weekly low of 12,128; greenback stands at risk of a larger pullback as it continues to carve a series of lower highs & lows.
  • Nevertheless, the U.S. Consumer Price Index (CPI) may fuel expectations for a December Fed rate-hike as the headline reading is expected to increase an annualized 0.1% in October after holding flat the month prior, while the core rate for price growth is expected to hold steady at 1.9%.
  • Waiting for the USDOLLAR to negate the near-term bearish patter for a more meaningful run at the topside targets around 12,273 (161.8% expansion) to 12.296 (100% expansion).
US Data

Read More:

Price & Time: EUR/JPY - Flirting With Cyclical Breakdown

EUR/JPY on the Cusp of Important Move

US DOLLAR Technical Analysis: Set To Hold Key Support

--- 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.

Trade Alongsidethe DailyFX Team on DailyFX on Demand

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

DISCLOSURES