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
GBP/USD
Bullish
USD/JPY
Bullish
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
Oil - US Crude
Bearish
Bitcoin
Bearish
More View more
Notice

DailyFX PLUS Content Now Available Freely to all DailyFX Users

Real Time News
  • Traders should know how to confidently approach, enter and exit both Bull or Bear markets. Need some insight into it? Get it from @nickcawley1 here: https://t.co/GhvvFrB3gz https://t.co/HcUUXMO1bK
  • 🇬🇧 GBP BOE Asset Purchase Target (SEP), Actual: N/A Expected: 435b Previous: 435b https://www.dailyfx.com/economic-calendar#2019-09-19
  • 🇬🇧 GBP Bank of England Bank Rate (SEP 19), Actual: N/A Expected: 0.75% Previous: 0.75% https://www.dailyfx.com/economic-calendar#2019-09-19
  • European parliament favours Breixt extension if one is to be requested $GBP
  • Having a consistent trading strategy can’t be understated when it comes to the process of trading. How can having a consistent strategy avoid #FOMOintrading? Find out from @WVenketas here: https://t.co/f4y1FOOZnM https://t.co/2QHVgRlMc7
  • Heads Up:🇺🇸 USD MBA Mortgage Applications (SEP 13) due at 11:00 GMT (15min), Actual: N/A Expected: N/A Previous: 2.0% https://www.dailyfx.com/economic-calendar#2019-09-18
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.42%, while traders in France 40 are at opposite extremes with 79.44%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/ReHxHQMPBJ
  • Commodities Update: As of 10:00, these are your best and worst performers based on the London trading schedule: Gold: 0.01% Oil - US Crude: -0.45% Silver: -0.93% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/rq2EKnzq0p
  • Bitcoin breakout nears...#bitcoin #btc https://t.co/5si6ROEIBy
  • EUR/USD, EUR/JPY Technical Forecast: Failure at Crucial Resistance More details in the link below: https://www.dailyfx.com/forex/technical/home/analysis/eur-jpy/2019/09/18/EURUSD-EURJPY-Technical-Forecast-Failure-at-Crucial-Resistance-MK.html https://t.co/9sYz3Ee5wq
AUDUSD Breakout Brings Former Support Zone on Radar

AUDUSD Breakout Brings Former Support Zone on Radar

2019-09-06 00:30:00
David Song, Currency Strategist
Share:

Australian Dollar Talking Points

AUDUSD climbs to a fresh monthly-high (0.6830) as the US and China plan to hold trade talks in October, and the exchange rate may stage a larger rebound over the coming days as it extends the series of higher highs and lows from earlier this week.

AUDUSD Breakout Brings Former Support Zone on Radar

AUDUSD breaks out of the range-bound price action from August as China Vice Premier Liu He plans to visit the US next month, and the development may keep the Australian dollar afloat as it encourages the Reserve Bank of Australia (RBA) to retain a wait-and-see approach for monetary policy.

Image of RBA official cash rate

It seems as though the RBA is in no rush to further insulate the economy following the back-to-back rate cuts, and the central bank may stick to the same script at the next meeting on October 1 as “growth in Australia is expected to strengthen gradually to be around trend over the next couple of years.”

The update to the Gross Domestic Product (GDP) report may push the RBA to adopt a more balanced tone as the economy expands 1.4% per annum in the second quarter of 2019, but little indications of a looming US-China trade deal may force the central bank to further embark on its rate easing cycle as Governor Philip Lowe and Co. pledge to “ease monetary policy further if needed.”

With that said, the ongoing negotiations between the US and China, Australia’s largest trading partner, may continue to produce headwinds for the Australian dollar amid the weakening outlook for global growth, but recent price action brings the former-support zone around 0.6850 (78.6% expansion) to 0.6880 (23.6% retracement) on the radar as the exchange rate extends the bullish sequence from earlier this week.

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

Source: Trading View

  • Keep in mind, the AUDUSD rebound following the currency market flash-crash has been capped by the 200-Day SMA (0.7025), with the exchange rate marking another failed attempt to break/close above the moving average in July.
  • With that said, the broader outlook for AUDUSD remains tilted to the downsideas both price and the Relative Strength Index (RSI) continue to track the bearish formations from late last year.
  • However, AUDUSD may stage a larger rebound over the coming days as it breaks out of the range-bound price action from the previous month, with the failed attempt to test the August-low (0.6677) bringing the former-support zone on the radar as the exchange rate extends the series of higher highs and lows from earlier this week.
  • The close above the 0.6800 (61.8% expansion) handle opens up the Fibonacci overlap around 0.6850 (78.6% expansion) to 0.6880 (23.6% retracement), with the next area of interest coming in around 0.6910 (38.2% 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.

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

DISCLOSURES

News & Analysis at your fingertips.