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
Mixed
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Bearish
More View more
Real Time News
  • Indices Update: As of 14:00, these are your best and worst performers based on the London trading schedule: France 40: 1.31% Wall Street: 1.23% FTSE 100: 1.17% US 500: 1.01% Germany 30: 0.99% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/Xzuuz08f1f
  • Florida virus cases increase 4.7% vs prior 4.4% 7-day average - BBG
  • EU's Borrell says a coordinated response to situation between China and Hong Kong is in the works $EURCNH
  • Sentiment for the #Euro improved once again as investors were net buyers ($700mln) amid a re-establishing of bullish bets in the currency. Get your $EURUSD market update from @JMcQueenFX here: https://t.co/Jmyea7Qp03 https://t.co/k6sDlraRo2
  • Commodities Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Silver: 2.62% Gold: 0.58% Oil - US Crude: -0.93% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/KB7r8U1R8E
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.74%, while traders in US 500 are at opposite extremes with 73.14%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/BJygBnwG6N
  • $Gold in focus after a few tests of support... buyers trying to push up to fresh high, bears saying not so fast. https://t.co/jsG6nm8Gah https://t.co/6q7H3DpuPG
  • Commodities Update: As of 13:00, these are your best and worst performers based on the London trading schedule: Silver: 2.27% Gold: 0.57% Oil - US Crude: -0.89% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/OoRNG6e1hh
  • Indices Update: As of 13:00, these are your best and worst performers based on the London trading schedule: France 40: 1.54% FTSE 100: 1.18% Germany 30: 1.08% Wall Street: 0.84% US 500: 0.79% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/PaeypV9oBz
  • GBP/USD continues to benefit from a weak US dollar and has added nearly four big figures from the end of June.Get your $GBPUSD market update from @nickcawley1 here: https://t.co/MKrznsTIJh https://t.co/sCkOgA8Nft
Bearish AUD/USD Trends Remain Intact Following Turnbull Turmoil

Bearish AUD/USD Trends Remain Intact Following Turnbull Turmoil

2018-08-28 23:30:00
David Song, Strategist
Share:

Australian Dollar Talking Points

AUD/USD appears to be stuck in a narrow range as Malcolm Turnbull gets ousted, with Scott Morrison now set to lead the Liberal party, and the exchange rate may continue to consolidate ahead of the next Reserve Bank of Australia (RBA) meeting on September 4 as the central bank is widely expected to keep the official cash rate (OCR) at the record-low.

Image of daily change for major currencies

Bearish AUD/USD Trends Remain Intact Following Turnbull Turmoil

Image of daily change for audusd rate

With Australia slated to hold elections in 2019, political headwinds may continue to drag on AUD/USD as the ongoing shuffle within parliament limits the RBA’s scope to normalize monetary policy.

Image of rba official cash rate

Recent comments from the RBA suggest the central bank will stick to its wait-and-see approach throughout the remainder of the year as ‘there was no strong case for a near-term adjustment in monetary policy,’ and Governor Philip Lowe & Co. may continue to tame bets for higher interest rates as ‘once-off declines in some administered prices in the September quarter are expected to result in headline inflation in 2018 being a little lower than earlier expected.’

With that said, uncertainty surrounding the fiscal outlook paired with the more of the same from Governor Lowe & Co. may continue to sap the appeal of the Australian dollar, and AUD/USD may continue to track the downward trend from earlier this year as market participants push out bets for an RBA rate-hike. 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 may continue to face range-bound conditions following the failed attempt to test the (0.7484), but the broader outlook remains tilted to the downside as both price and the Relative Strength Index (RSI) continue to track the bearish trends from earlier this year.
  • A closing price below the 0.7320 (50% expansion) to 0.7340 (61.8% retracement) region raises the risk for a move back towards the 2018-low (0.7203).
  • Need a 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.