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
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Bearish
Gold
Bullish
GBP/USD
Bearish
USD/JPY
Bearish
More View more
Real Time News
  • Forex Update: As of 14:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.22% 🇯🇵JPY: 0.11% 🇬🇧GBP: 0.07% 🇨🇭CHF: -0.07% 🇦🇺AUD: -0.27% 🇳🇿NZD: -0.69% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/NAFGZR3XoI
  • Indices Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Germany 30: -0.06% FTSE 100: -0.09% France 40: -0.16% US 500: -0.37% Wall Street: -0.42% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/vBV4t5YRfa
  • I am a gold bull as I have been for a while. I'm dubious on this current breakout holding, however, for a few reasons. 1) first test above a big zone in a long time 2) $USD is near a huge spot of support (below) 3) It's a Monday and $Gold is already stretched https://t.co/kVtOsQ8iyx https://t.co/ueeWs6XcN2
  • *GOLD TRYING TO BREAKOUT* $Gold Testing above a huge, confluent zone of resistance right now fresh 3-month highs Possible bull flag breakout if buyers can continue to push $Gold $GC $GLD https://t.co/9dM8qAsJFl
  • Cryptos rebound after Tesla dump rumors are denied. BTC/USD rejects further sellers at previous record-high, momentum building higher. Get your $btc market update from @HathornSabin here:https://t.co/76oWtJE96v https://t.co/r7CXq52xWf
  • Commodities Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.93% Silver: 0.75% Gold: 0.72% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/g27Iwp8uPa
  • 🇺🇸 NAHB Housing Market Index (MAY) Actual: 83 Expected: 83 Previous: 83 https://www.dailyfx.com/economic-calendar#2021-05-17
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 90.00%, while traders in Germany 30 are at opposite extremes with 71.53%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/CRl85ShvFp
  • Commodities Update: As of 13:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.78% Silver: 0.70% Gold: 0.56% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/2TtnMVtOFs
  • $EURUSD still battling at that fibo resistance 2167, another inflection this morning https://t.co/v1X3gN2RRX https://t.co/oMC1OvWkI7
AUDUSD Carves Lower Highs and Lows After Being Capped by 200-Day SMA

AUDUSD Carves Lower Highs and Lows After Being Capped by 200-Day SMA

David Song, Strategist

Australian Dollar Talking Points

AUDUSD extends the decline from the previous week even though the US and China, Australia’s largest trading partner, make further attempts to reach a trad deal, and fresh developments coming out of the Asia/Pacific region may do little to shore up the Aussie Dollar exchange rate amid the weakening outlook for growth and inflation.

AUDUSD Carves Lower Highs and Lows After Being Capped by 200-Day SMA

AUDUSD stands at risk of exhibiting a more bearish behavior over the remainder of the month as the Reserve Bank of Australia (RBA) endorses a dovish forward guidance ahead of the next meeting on August 6.

It seems as though the RBA will continue to insulate the economy as Governor Lowe and Co. standprepared to provide additional support by easing monetary policy further,” and the central bank may continue to push the official cash rate (OCR) to fresh record lows as Governor Lowe insist that “it will be some time before inflation is comfortably back within the target range.

Image of DailyFX economic calendar

Updates to Australia’s Consumer Price Index (CPI) may reinforce the RBA’s outlook even though the headline reading is projected to widen to 1.5% from 1.3% as the core rate of inflation is expected to narrow to 1.5% from 1.6% per annum in the first quarter of 2019.

A batch of mixed data prints is likely to drag on the Australian dollar, with AUDUSD at risk of giving back the rebound from the June-low (0.6832) as signs of below-target price growth puts pressure on the RBA to further embark on its rate easing cycle.

In turn, AUDUSD may extend the recent string of lower highs and lows ahead of the Federal Reserve interest rate decision on July 31, with the exchange rate at risk of facing a further decline as the advance from the June-low (0.6832) unravels ahead of the 200-Day SMA (0.7086).

Sign up and join DailyFX Currency Strategist 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 broader outlook for AUDUSD remains tilted to the downside, with the exchange rate still at risk of giving back the rebound from the 2019-low (0.6745) as both price and the Relative Strength Index (RSI) continue to track the bearish formations from late last year.
  • Moreover, the advance from the June-low (0.6832) has sputtered ahead of the Fibonacci overlap around 0.7080 (61.8% retracement) to 0.7110 (78.6% retracement), which lines up with the 200-Day SMA (0.7086), with AUDUSD carving a series of lower highs and lows.
  • The break/close below the 0.6950 (61.8% expansion) to 0.6960 (38.2% retracement) region opens up the Fibonacci overlap around 0.6850 (78.6% expansion) to 0.6880 (23.6% retracement), with a break of the June-low (0.6832) raising the risk for a move towards 0.6730 (100% expansion).

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 Strategist

Follow me on Twitter at @DavidJSong.

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

DISCLOSURES