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.

Free Trading Guides
EUR/USD
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
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
USD/JPY
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
Mixed
Oil - US Crude
Bullish
Bitcoin
Mixed
More View more
Real Time News
  • RT @baldersdale: If gas did tear Riyadh and Doha apart almost three years ago, it has power to bring these energy superpowers together agai…
  • US Commerce Secretary Ross says will leave most of the hard issues for later with China deal
  • What is market volatility and what does a market event volatility look like? Find out from @PaulRobinsonFX here: https://t.co/vg7w10la3j https://t.co/hIQjdAG90I
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 98.09%, while traders in US 500 are at opposite extremes with 77.72%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/stJYkA66PR
  • LIVE NOW! Analyst and Editor @MartinSEssex discusses the most important events and themes that have driven market sentiment and will drive it in the days ahead here - https://www.dailyfx.com/webinars/181540619?CHID=9&QPID=917720
  • DAX 30 sell-off continues...down 1.6% #dax #equities @DailyFX Price via @IGcom https://t.co/qJxs4rkL7U
  • The inside bar pattern occurs regularly within the financial markets. Incorporating the inside bar strategy within a trading system can enhance a trader’s market analysis technique. Find out how you can use it from @WVenketas here: https://t.co/E3EWOYTYNw https://t.co/4uin0kDraz
  • Commodities Update: As of 11:00, these are your best and worst performers based on the London trading schedule: Silver: 0.43% Gold: 0.37% Oil - US Crude: -0.55% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/n5FH8VIcAN
  • Forex Update: As of 11:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 0.31% 🇨🇭CHF: 0.23% 🇪🇺EUR: 0.16% 🇯🇵JPY: -0.01% 🇳🇿NZD: -0.07% 🇦🇺AUD: -0.13% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/6mXD54E7Mm
  • Coming up at half past the hour: my weekly webinar on market sentiment. Do join me if you're free. You can sign up here: https://www.dailyfx.com/webinars/181540619?CHID=9&QPID=917711
AUD/USD Rate Rebound Fizzles Amid Turnbull Turmoil

AUD/USD Rate Rebound Fizzles Amid Turnbull Turmoil

2018-08-23 21:56:00
David Song, Currency Strategist
Share:

Australian Dollar Talking Points

AUD/USD gives back the rebound this month as Australia Prime Minister Malcolm Turnbull struggles to secure his seat, and the exchange rate appears to be on track to test the August-low (0.7203) as it snaps the series of higher highs & lows carried over from earlier this week.

Image of daily change for major currencies

Bearish AUD/USD Trends Remain in Play Amid Turnbull Turmoil

Image of daily change for audusd

The recent backlash against Mr. Turnbull appears to be dragging on the Australian dollar as it has the potential to alter the monetary policy outlook, and a change in leadership may keep AUD/USD under pressure as it encourages the Reserve Bank of Australia (RBA) to further support the real economy.

Image of rba cash rate

The RBA Minutes suggest the central bank will keep the official cash rate (OCR) on hold at the next meeting on September 4 as ‘there was no strong case for a near-term adjustment in monetary policy,’ and Governor Philip Lowe & Co. may stick to the sidelines throughout the remainder of the year as ‘the direction of international trade policy in the United States continued to be a source of uncertainty for the global outlook.

With that said, the uncertainty surrounding the fiscal outlook may continue to rattle the Australian dollar, and the broader outlook for AUD/USD remains tilted to the downside as the exchange rate fails to retain the summer range, with the Relative Strength Index (RSI) also reinforcing a bearish outlook as it extends the downward trend from earlier this year. Sign up and join DailyFX Currency Analyst David Song LIVE for an opportunity to discuss potential trade setups.

AUD/USD Daily Chart

Image of audusd daily chart
  • AUD/USD appears to have marked a failed run at the July-high (0.7484), with the lack of momentum to clear the 0.7400 (38.2% expansion) handle raising the risk for a run at the monthly-low (0.7203).
  • Need a break/close below the 0.7180 (61.8% retracement) to 0.7230 (61.8% expansion) region to bring the downside targets on the radar, with the next hurdle coming in around 0.7090 (78.6% retracement) to 0.7110 (78.6% retracement).

Additional Trading Resources

Are you looking to improve your trading approach? Review the ‘Traits of a Successful Trader’ series on how to effectively use leverage along with other best practices that any trader can follow.

Want to know what other currency pairs the DailyFX team is watching? Download and review the Top Trading Opportunities for 2018.

--- Written by David Song, Currency Analyst

Follow me on Twitter at @DavidJSong.

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

DISCLOSURES

News & Analysis at your fingertips.