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
Oil - US Crude
Bearish
Wall Street
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
Gold
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
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • Join @ddubrovskyFX 's #webinar at 8:00 PM ET/12:00 AM GMT to find out what information you can gain from knowing what other traders are buying or selling. Register here: https://t.co/Bb3CTCTm44 https://t.co/14EYRSUsUU
  • US President Donald Trump said he has had fruitful discussions with Saudi Arabia and Russia on oil prices and efforts towards combatting the #coronavirus - First Squawk #OOTT
  • South Korean daily exports may show negative growth - Finance Chief (BBG) #KRW
  • President Donald Trump says he has not done anything on tariff payment deferments and that he has not been presented a delay plan -BBG
  • New Zealand Finance Minister the Treasury is considering "bespoke" solutions for bigger firms needing financial assistance - BBG #NZD
  • The #Dow Jones Industrial Average sold off by as much as 38.4% from the February high to the March low, while the S&P 500 lost as much as 35.9% over the same observed period. Get your #equity market update from @JStanleyFX here: https://t.co/HkNM11G1n9 https://t.co/Tiremr0LkX
  • US equity futures pointing lower heading into Asia's Wednesday trading session
  • President Trump says we're going to go through a very tough two weeks #coronavirus
  • $EURUSD Daily Pivot Points: S3: 1.0862 S2: 1.0958 S1: 1.1002 R1: 1.1099 R2: 1.1151 R3: 1.1247 https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • #DAX: Bulls have been unable to break above resistance derived from the December 2018 lows. Get your DAX market update from @PeterHanksFX here: https://t.co/dnJxJVLIOD https://t.co/X6wF8UKN87
Australian Dollar Stays Down Despite Better Construction PMI

Australian Dollar Stays Down Despite Better Construction PMI

2017-01-09 02:21:00
David Cottle, Analyst
Share:

Talking Points

  • The pace of deceleration in Australia’s construction sector continues to fall
  • December’s Performance of Construction Index came in at 47 vs. 46.6 prior
  • However, AUD/USD remained stuck in its post-US payrolls data downtrend

News of continued slowing in the pace of deceleration in the construction sector did little to advance the cause of Aussie Dollar bulls as a new trading week got under way in Asia on Monday.

The Performance of Construction Index from the Australian Industry Group came in at 47 for December. This was an improvement from November’s 46.6 but still below the crucial 50 level, which would indicate an expansion in overall activity. The index is analogous to the Purchasing Managers’ Indexes released elsewhere around the world and has been improving for three straight months. Increases in residential construction have been offset by falls elsewherehowever, often as the Australian mining industry retrenches after years of expansion.

In any case, the Australian Dollar remained under pressure against the greenback. Friday’s US labor-market report showed underwhelming job creation but its news of stronger wage settlements kept the prospect of higher interest rates very much alive for global markets. This in turn has burnished the US Dollar’s luster once again, to the detriment of most major currencies.

The construction data are also likely to have been released into a rather thin market, with Japanese desks thinly staffed or absent altogether for a holiday on Monday. AUD/USD slipped to 0.72885 after the release, from 0.72913 just before it.

Trickling down: AUD/USD

Australian Dollar Stays Down Despite Better Construction PMI

Chart compiled using TradingView.

This is a pretty light week for scheduled Australian data, and US data for that matter, so it’s possible that the Australian Dollar fightback against its own “Trump trade” weakness could resume in time.

Would you like to know more about financial market trading? The DailyFX webinars can help.

--- Written by David Cottle, DailyFX Research

Contact and follow David on Twitter: @DavidCottleFX

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

DISCLOSURES

News & Analysis at your fingertips.