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.

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
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
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
Wall Street
Mixed
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
GBP/USD
Bearish
USD/JPY
Bearish
More View more
Real Time News
  • The RBA highlighting several key risks to the local economy in its semi-annual FSR may drive AUD lower against haven-associated currencies despite the expectation of strong Q1 GDP figures out of China. Get your market update from @DanielGMoss here: https://t.co/kLZ8DQxH3z https://t.co/KubqA24TLH
  • Get your snapshot update of the of relative currency strength and exchange status from around the globe here: https://t.co/H19vRDCpUJ https://t.co/36Sy4DOnFD
  • Though the $SPX hit a record high through Friday, there was little momentum and far less correlation across various risk assets. Can we find more serious traction - or a reversal - amid earnings, inflation-Fed forecasting, US-China trade negotiations? https://www.dailyfx.com/forex/video/daily_news_report/2021/04/10/SP-500-Outlook-Carries-Risk-Trends-Dollar-Event-Heavy-on-USDJPY-USDCNH.html https://t.co/AVTM9QvEGQ
  • The Spinning Top candlestick pattern forms part of the vast Japanese candlestick repertoire with its own distinct features. Gain a better understanding of the spinning top candlestick here: https://t.co/DWm7cBMUg9 https://t.co/Gd6eIbE1mb
  • There’s a strong correlation between interest rates and forex trading. Forex is ruled by many variables, but the interest rate of the currency is the fundamental factor that prevails above them all. Learn how interest rates impact currency markets here: https://t.co/J0EPMD2Cfi https://t.co/Jf96VhFDOp
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkRxVw https://t.co/Rjfdv8jLQV
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here: https://t.co/7t4BzmLg8w https://t.co/a6qsFOcPUl
  • Build your USD/JPY trading strategy by honing your trading skills. Get your free insight here: https://t.co/hgVq7LwTSH https://t.co/xXZYbWqEwP
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM7kO6a https://t.co/HUaCpOPird
  • Human error in the forex market is common and often leads to familiar trading mistakes. These trading mistakes crop up particularly with novice traders on a regular basis. Learn about the top ten trading mistakes and how you can avoid them here: https://t.co/i8E2AXtzF3 https://t.co/Hx1251BmAZ
Australian Dollar Leaps on Record-High Trade Surplus

Australian Dollar Leaps on Record-High Trade Surplus

David Cottle, Analyst

Talking Points

  • The Aussie Dollar got an early lift as its home’s December trade data smashed estimates
  • Australia’s second straight trade surplus came in at A$3.5 billion, when A$2 billion had been looked for
  • Exports continue to surge, while imports creep up

The Australian Dollar surged Thursday after its home country’s trade surplus came in hugely ahead of expectations.

December’s official trade balance was A$3.511 billion (US $2.6 billion), when the markets had been looking for a surplus of A$2 billion. This is the second straight month of surplus, and a record high, following a string of deficits going right back to March 2014. November’s surplus was A$2.04 billion.

The numbers are not altogether good news for Australia’s economy because they’ve been generated by exports surging vastly ahead of imports. In December exports leaped by 5% compared to the month before, while imports rose a less-impressive 1%. This of course asks questions about Australia’s internal demand, questions which have already been posed by underwhelming consumer price and retail sales numbers.

However, AUD/USD markets were in the mood to celebrate the positive in the data, which is undoubted good news for Australia’s vast commodity-export machine. AUD/USD pushed up to 0.76215 right after the data, from 0.7600 just before it.

Straight up: AUD USD

Australian Dollar Leaps on Record-High Trade Surplus

Chart Compiled Using TradingView

Some mixed news from the housing market was released at the same time. Building approvals fell by 1.2% on the month in December. That was slightly better than the markets had expected. But they fell by 11.4% on the year, which even allowing for holiday-season construction torpor is a big fall.

Earlier the US Federal Reserve left all its monetary settings alone as expected on Wednesday, by unanimous vote. The US Dollar slipped broadly after the decision, including against AUD, thanks to a Fed statement that markets interpreted as less hawkish than expected. (In monetarist lingo “hawks” prioritize inflation control, often urging early interest-rate rises. “Doves” take a broader view and may be content to let rates to stay lower for longer.)

Still, the greenback’s weakness was short lived and buyers soon emerged. December’s line that the Fed still expects to raise interest rates three times this year is holding.

How does your currency take compare with the markets? Take a look at the DailyFX sentiment page to find out.

--- 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