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. See our updated Privacy Policy here.

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
Gold
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
More View more
Real Time News
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here: https://t.co/KDjIjLdTSk https://t.co/arE0VMeE3k
  • Coming up at half past the hour. I'll be analysing the charts, looking at the confidence data on the calendar this week and talking about the IG client sentiment numbers. Do join me if you can https://t.co/nm3tP1xRmA
  • Join @MartinSEssex at 5:30 EST/9:30 EST for a webinar on trading sentiment. Register here: https://t.co/CX9djlHnWK https://t.co/NN8iRzbMsl
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.65%, while traders in France 40 are at opposite extremes with 77.78%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/mhS5GPlzBU
  • Commodities Update: As of 07:00, these are your best and worst performers based on the London trading schedule: Gold: -0.17% Oil - US Crude: -0.22% Silver: -0.33% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/DrnTBv3TGT
  • Forex sentiment analysis can be a useful tool to help traders understand and act on price behavior. Learn how to get the most out of understanding trader sentiment here: https://t.co/rJznrXkcYz https://t.co/F98u380a6a
  • Forex Update: As of 07:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.63% 🇦🇺AUD: 0.42% 🇯🇵JPY: 0.15% 🇪🇺EUR: 0.01% 🇨🇭CHF: -0.00% 🇨🇦CAD: -0.07% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/qb29dNwFFu
  • 🇨🇭 Consumer Confidence (Q3) Actual: 10 Previous: -18 https://www.dailyfx.com/economic-calendar#2021-08-03
  • 🇪🇸 Unemployment Change (JUL) Actual: -197.8K Previous: -166.9K https://www.dailyfx.com/economic-calendar#2021-08-03
  • Indices Update: As of 07:00, these are your best and worst performers based on the London trading schedule: Wall Street: 0.31% US 500: 0.27% France 40: 0.20% FTSE 100: -0.04% Germany 30: -0.14% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/wOyy3Nhn5u
AUD/USD Holds Narrow Range Despite Rising Australia Mortgage Rates

AUD/USD Holds Narrow Range Despite Rising Australia Mortgage Rates

David Song, Strategist

Australian Dollar Talking Points

AUD/USD holds a narrow range even as commercial banks in Australia start to raise interest rates, with the exchange rate at risk for further losses as the Reserve Bank of Australia (RBA) remains in no rush to lift the official cash rate (OCR) off of the record-low.

Image of daily change for major currencies

AUD/USD Holds Narrow Range Despite Rising Australia Mortgage Rates

Image of daily change for audusd rate

Commonwealth Bank of Australia along with Australia and New Zealand Banking Group have now joined Westpac Banking Corp. in raising mortgage rates to combat higher funding costs, but recent comments from the RBA suggest the central bank will continue to sit on the sidelines as ‘the average mortgage rate paid is lower than a year ago.

Image of RBA cash rate

Even though the RBA’s ‘central forecast is for growth of the Australian economy to average a bit above 3 per cent in 2018 and 2019,’ it sees as though Governor Philip Lowe & Co. will retain the current policy throughout the remainder of the year as ‘household income has been growing slowly and debt levels are high.

It seems as though the RBA will continue to tame expectations for a rate-hike at the next meeting on October 2 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,’ and the Australian dollar stands at risk of facing headwinds over the near-term as the central bank warns ‘high debt levels could complicate future monetary policy decisions by making the economy less resilient to shocks.’

In turn, the broader outlook for AUD/USD remains tilted to the downside as both price and the Relative Strength Index (RSI) continue to track the bearish trends from earlier this year, with the September opening range still in focus as the exchange rate holds a narrow range. 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
  • Failure to retain the recent series of lower highs & lows may keep AUD/USD within a narrow range, with the first top hurdle coming in around 0.7320 (50% expansion) to 0.7340 (61.8% retracement)
  • However, lack of momentum to climb back above the 0.7180 (61.8% retracement) to 0.7230 (61.8% expansion) region raises the risk for further losses, with the next downside area of interest around 0.7090 (78.6% retracement) to 0.7110 (78.6% retracement).
Image of DailyFX economic calendar

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