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
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
Mixed
Gold
Bullish
Oil - US Crude
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
Bitcoin
Mixed
More View more
Real Time News
  • RT @GlobalTimesBiz: After more than two weeks of #China’s efforts to resume business activities, only 30 percent of migrant workers has ret…
  • It seems the markets are riding high, but risk is always lurking around the corner. Consider your escape plan before you find yourself in collapsing market. What are the top havens for different conditions in 2020? Find out from @JohnKicklighter here:https://t.co/1oeXWEsJkb https://t.co/c5YVgs5YKD
  • While Sino-US trade jitters are temporarily abating, China-Swedish trade tensions are rising as a part of a political contagion of growing economic hostilities between nations across the world. Get your market update from @ZabelinDimitri here:https://t.co/F1fVoyzoz5 https://t.co/z49NzgZrXd
  • RT @malkudsi: Natural Gas Eyes Pushing Higher as Support Holds - Nat Gas Technical Analysis More details in the link below: https://t.co/HG…
  • As prices dance around on charts, traders are often looking for reasons to explain price movements; however, the underlying source of price movement boils down to the relationship between supply and demand. Learn more about the forces of S&D on forex here: https://t.co/8LfkLXbj2W https://t.co/swcuwAMGAk
  • How can traders avoid #FOMO in trading? Start by implementing a well-heeled plan taking only four hours per week. Get your insight from @JStanleyFX here: https://t.co/vwUShQPc27 #tradingstyle https://t.co/4adyTWvQ22
  • What are the Market cycles? How are #currencies impacted in these cycles? How can these cycles impact #forextrading patterns? Find out here: https://t.co/ckr2fUOWqW https://t.co/gLJGj1FAOC
  • Central bank independence has several advantages and disadvantages. Find out what they are in-depth with @MartinSEssex here: https://t.co/wVFXbbTxf1 https://t.co/J0MMkVmCUu
  • Get your stock market basics right - what is the stock market and how does stock trading work? Find out here: https://t.co/JfAJLAtlsY https://t.co/ZfPUxHWeiG
  • The Mexican economy contracted for the first time in almost 10 years in 2019, but growth is expected to pick up in 2020 according to its finance minister. Get your $USDMXN market update from @HathornSabin here: https://t.co/gupJdU7WYT https://t.co/mMN8LFb5i5
The AUD/USD Advances after October U. of Michigan Confidence Index Unexpectedly Climbs

The AUD/USD Advances after October U. of Michigan Confidence Index Unexpectedly Climbs

2011-10-28 15:29:00
Trang Nguyen,
Share:

THE TAKEAWAY: The October U. of Michigan Confidence Final Index Unexpectedly Climbs > Better Outlook about the State of the Economy>AUD/USD Gains

The Thomson Reuters/ University of Michigan final index, a leading indicator assesses consumer confidence regarding personal finances, business conditions and purchasing power, surprisingly surged to 60.9 in October from 59.4 in the previous month. The final figure of consumer expectations for six months from now exceeded the median forecast as 66 economists polled by Bloomberg Survey had called for the print of 58. Projections ranged from 55 to 60. The preliminary reading of consumer sentiment for the month was 57.5. A rebound in sentiment gauge during recent months after sinking to the lowest level since 1980 in August reflects consumers’ better outlook about the state of the economy and stronger expectations on business conditions, employment and income.

U. of Michigan Confidence: January 2010 to Present

102811_U.of_Michigan_Confidence_body_Chart_1.png, The AUD/USD Advances after October U. of Michigan Confidence Index Unexpectedly Climbs

Prepared by Trang Nguyen

Economic conditions index advanced to 75.1 from 73.8 in August, while economic outlook index climbed to 51.8 from 47.0. Inflation expectations for one year and five year ahead remained unchanged in the month at 3.2 percent and 2.7 percent, respectively. Purchases edged up 0.6 percent in line with expectations, following a 0.2 percent advance in the preceding month. Incomes, however, rose less than forecasted. Michigan sentiment index on the upward trend is a good sign that the world’s biggest economy has been on pace of recovery. Yesterday’s report issued by Commerce Department also showed that real gross domestic product accelerated at an annual rate of 2.5 percent in the third quarter of 2011, led by gains in personal consumption expenditures, nonresidential fixed investment, exports and federal government spending.

AUD/USD 1-minute Chart: October 28, 2011

102811_U.of_Michigan_Confidence_body_Picture_1.png, The AUD/USD Advances after October U. of Michigan Confidence Index Unexpectedly Climbs

Charts created using Strategy Trader– Prepared by Trang Nguyen

Market participants’ reactions demonstrates tremendous shift on sentiments these days when European bailout fund to fight the regions’ debt crisis iss reaching to conclusion and domestic fundamental data has come out stronger than last few months. The U.S. dollar loses its ground as investors have been seeking risk-correlated and high-yielding assets. As can be seen from the AUDUSD one-minute chart above, the currency pair extends its upward momentum after the Michigan index printed better than estimate. The AUD/USD climbed approximately 50 pips from 1.0680 to 1.0730 within thirty minutes. The Relative Strength Indicator (RSI) above 70-level twice following the release signaled that foreign exchange traders have been aggressively buying the aussie while cutting their dollar holdings. At the time this report was written, the aussie traded at 1.07156 U.S. dollar.

--- Written by Trang Nguyen, DailyFX Research Team for DailyFX.com

To contact Trang, email tnguyen@dailyfx.com

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

DISCLOSURES

News & Analysis at your fingertips.