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
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
GBP/USD
Mixed
USD/JPY
Bullish
Gold
Bullish
Oil - US Crude
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
Bitcoin
Mixed
More View more
Real Time News
  • Trump Advisor Kudlow says USMCA trade deal could pass the House and Senate this fall $SPX $DXY
  • LIVE NOW: Join @JStanleyFX as he runs through price action set-ups for the FX and CFDs market. https://www.dailyfx.com/registerToSeminar?webinar=1338844901231735299&utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • #Sterling Price Outlook: British Pound Tests 1.30– #Cable Break or Bend - $GBPUSD - https://t.co/mPplq2YjAt https://t.co/5Eee2QqB05
  • starting now -> https://www.dailyfx.com/registerToSeminar?webinar=1338844901231735299&utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr https://t.co/w2M2LwnmLN
  • Poll: Is this technical move by the broad equity measure, S&P 500, emerging markets and other risk assets today the beginning of a genuine 'risk on' swell?
  • LIVE IN 5 MINUTES: Join @JStanleyFX as he runs through price action set-ups for the FX and CFDs market. https://www.dailyfx.com/registerToSeminar?webinar=1338844901231735299&utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • The $ACWI all world equities index has eased up to its highest level in since Feb 1, 2018... https://t.co/v2AHy52gUE
  • RT @GeorgeWParker: NEW Am told that @BorisJohnson is now ready to accept a ten day Brexit delay beyond “do or die” day on Oct 31 if he lose…
  • Another way of measuring the extreme momentum of $GBPUSD up to last last week: spot relative to the 20-day moving average hit most extreme since 9/15/17 https://t.co/jtKJ043Rnv
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.03%, while traders in US 500 are at opposite extremes with 77.70%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/ydwk1q2EV3
AUDUSD April Range in Focus Ahead of RBA Financial Stability Review

AUDUSD April Range in Focus Ahead of RBA Financial Stability Review

2019-04-08 19:30:00
David Song, Currency Strategist
Share:

Australian Dollar Talking Points

AUD/USD tracks the monthly opening range ahead of the Reserve Bank of Australia’s (RBA) semi-annual Financial Stability Review (FSR), and the aussie-dollar exchange rate may continue to consolidate over the coming days as it appears to be stuck in a wedge/triangle formation.

Image of daily change for major currencies

AUDUSD April Range in Focus Ahead of RBA Financial Stability Review

Image of daily change for audusd rate

AUD/USD attempts to retrace the decline following the RBA meeting as the U.S. and China, Australia’s largest trading partner, appear to be on track to finalize a trade agreement, but the development may do little to alleviate the downside risks surrounding the Australian economy as the central bank endorse a wait-and-see approach for monetary policy.

Updates to the RBA’s Financial Stability Review (FSR) may produce headwinds for the Australian dollar as the central bank warns that ‘growth has slowed and downside risks have increased,’ and Governor Philip Lowe & Co. may show a greater willingness to insulate the economy as ‘growth in household consumption is being affected by the protracted period of weakness in real household disposable income and the adjustment in housing markets.

Image of rba official cash rate

In turn, the RBA may insist that ‘the low level of interest rates is continuing to support the Australian economy’ at the next meeting on May 7, but the central bank may continue to adjust the forward-guidance for monetary policy as officials see ‘scenarios where an increase in the cash rate would be appropriate at some point and other scenarios where a decrease in the cash rate would be appropriate.

With that said, AUD/USD may continue to consolidate over the near-term as it appears to be stuck in a wedge/triangle formation, with the monthly opening range on the radar as the Relative Strength Index (RSI) highlights a similar dynamic. Sign up and join DailyFX Currency Analyst David Song LIVE for an opportunity to discuss potential trade setups.

AUD/USD Rate Daily Chart

Image of audusd daily chart

  • Keep in mind, the AUD/USD rebound following the currency market flash-crash has been capped by the 200-Day SMA (0.7201), with the exchange rate still tracking the bearish trend from late-2018 as the rebound from the March-low (0.7003) fails to push aussie-dollar back above the Fibonacci overlap around 0.7170 (23.6% expansion) to 0.7180 (61.8% retracement).
  • However,AUD/USD appears to be stuck in a wedge/triangle formation, with the Relative Strength Index (RSI) also generating a mixed signal as the oscillator highlights a similar dynamic.
  • In turn, need a break of the April-low (0.7053) to open up the 0.7020 (50% expansion) area, which sits just above the March-low (0.7003).

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 2019

--- 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.