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
GBP/USD
Bearish
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
More View more
Real Time News
  • The USD could still rally a bit from here, but has resistance not far ahead that it will need to overcome if it is to extend to a larger degree. Get your weekly $USD technical forecast from @PaulRobinsonFX here: https://t.co/n0CVWWOJDe https://t.co/0uLjsQ2gwM
  • When it comes to buying and selling forex, traders have unique styles and approaches. Learn about buying and selling forex here: https://t.co/D8DXSAdpqC https://t.co/nfiFAlyYXv
  • Slippage can be a common occurrence in forex trading but is often misunderstood. Understanding how forex slippage occurs can enable a trader to minimize negative slippage, while potentially maximizing positive slippage. Learn about FX slippage here: https://t.co/Blrl0unrdT https://t.co/mIsVJ4zTbB
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePTpzSI https://t.co/hymrumanUY
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfs2Iz https://t.co/6dAqxsVfxJ
  • The results of this weekend’s German Federal Election will likely dominate Euro sentiment at the start of the week ahead but after a possible EUR/USD bounce they will have little long-term impact. Get your weekly $EUR forecast from @MartinSEssex here: https://t.co/Xu3ZT7EtrW https://t.co/5VHKn52MaA
  • The Consumer Price Index, better known by the acronym CPI, is an important economic indicator released on a regular basis by major economies to give a timely glimpse into current growth and inflation levels. Learn how to better understand CPI here: https://t.co/nAa0fHq4Np https://t.co/mf9rsmIvaW
  • 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/mYWO0Eta0P
  • Sterling continues to contract into trend extremes and the focus is on a pending breakout in the weeks ahead. Get your weekly $GBP technical forecast from @MBForex here: https://t.co/ZvEMQuFjSs https://t.co/rMmq9cehnY
  • Japanese candlesticks are a popular charting technique used by many traders, and the shooting star candle is no exception. Learn about the shooting star candlestick and how to trade it here: https://t.co/mfwJ0sZLTs https://t.co/tm4k3IVzHr
Australian Dollar Gains As Export Data Raise GDP Hope

Australian Dollar Gains As Export Data Raise GDP Hope

David Cottle, Analyst

Talking Points

  • AUD/USD rose despite a yawning current account deficit for Australia
  • Why? Well, exports’ share of growth increased
  • Chinese Caixin PMI data also perked up again

What does the trading elite have which eludes the rest? We’ve looked at over 40 million real trades in an effort to discern the Traits of Successful Traders. We think it makes fascinating reading.

The Australian Dollar got a boost Tuesday, despite news of a surprisingly high current account deficit as exports’ share of Gross Domestic Product increased, boding well for overall growth figures released tomorrow.

The second quarter’s balance of payments on current account was A$9.6 billion (US$7.7 billion), hugely more than the A$7.5 billion expected. However net exports as a percentage of GDP rose to 0.3%. This was much better than the expected flat outcome and the first quarter’s 0.7% deduction. Government spending also rose and looks set to make a positive GDP contribution.

There was more good news for the Aussie from China. The private Caixin Purchasing Managers Index survey found the service sector in resolutely expansionary mood. Its August reading came in at 52.7, well above July’s 51.5. Coupled with an already-released manufacturing PMI of 51.6 (a six-month high), this puts last month’s composite reading at a healthy 52.4. In the logic of PMIs any reading above 50 means the sector in question expanded.

The official PMI covers larger, often State-controlled enterprises was released last week. It too came in ahead of expectations and gave the Aussie a modest fillip.

However, the impact of this morning’s numbers may well have been blunted by the close proximity of the Reserve Bank of Australia’s September monetary policy call, which is coming up at 04:30GMT. The RBA is not expected to alter its record-low 1.50% Official Cash Rate so any comments it cares to make will be the markets’ focus. The central bank has been assiduous in communicating to markets that it does not want to see the Australian Dollar strengthen much further for fear of it then hampering both growth and inflation.

Investors will be keen to see whether it does so again as AUD/USD creeps up. The cross has been confined to a very narrow band for weeks now. There has been a sense that the market would quite like to buy- the cross is after all sitting close to two-year peaks. In the past few days it has inched back above the top of that band, which would seem to render it vulnerable to a reversal if the RBA inveighs against currency strength or if GDP still disappoints.

Australian Dollar Gains As Export Data Raise GDP Hope

--- 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