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
Mixed
Oil - US Crude
Mixed
Wall Street
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
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • Commodities Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: -0.03% Gold: -0.29% Silver: -0.57% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/nj9OGkvt7a
  • The Dollar ($DXY) has cleared both its 50-day SMA and the midpoint of the 2021 range. What has greater pull: its roll as wayward safe haven (vs inverted $SPX) or the recent fade in returns (US 10yr). The 20-day correlation to both approximately ~0.8, strong https://t.co/1dteHRggua
  • US Dollar Index (DXY) trend from last March picking up steam again. February and January lows up next on radar, could take a few weeks. Get your market update from @PaulRobinsonFX here:https://t.co/KCsZINK3KI https://t.co/3EN4Xrxnjn
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.55%, while traders in Germany 30 are at opposite extremes with 80.61%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/9j9ojxURdw
  • RT @ChadPergram: Biden now mtg w/bipartisan/bicameral mbrs about infrastructure. Says they're discussing "how to pay for it." Adds they "ho…
  • $WTI #Crude #Oil Price Outlook: Breakout Eyes Resistance- Bulls at Risk - https://t.co/RuNq3bxxaW https://t.co/784dxJq0m7
  • Indices Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Germany 30: -0.17% France 40: -0.21% FTSE 100: -0.21% Wall Street: -0.43% US 500: -0.63% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/TOxQi0CN8k
  • A mildly positive start to the week for the British Pound as it extends last week’s rally. The partial re-opening of the UK economy is giving Sterling a helping hand. Get your $GBPUSD market update from @nickcawley1 here:https://t.co/2XWtWgcHTX https://t.co/iBrDUvrv4c
  • President Biden: Willing to compromise on infrastructure. $DIA $USD
  • Despite a rise in US 10yr Treasury yields to a multi-day high, the US Dollar has remained weaker today. The $DXY is now trading back below the 91.10 level. $USD https://t.co/gQbHLTf5tj
Australian Dollar Whacked By Business Confidence, Housing Misses

Australian Dollar Whacked By Business Confidence, Housing Misses

David Cottle, Analyst

Talking Points:

  • Australian business confidence took a hit in November
  • Firms assessment of current conditions was especially sour
  • House prices missed forecasts too

Just getting started in the AUD/USD trading world? Our beginners’ guide is here to help

The Australian Dollar fell Tuesday on news of a business confidence retreat.

November’s indicator from big local lender National Australia Bank showed that firms’ assessment of current business conditions had slumped to 12, from October’s 21. The confidence index slipped to 6, from a previous 8.

This is an alarming piece of data because business confidence has been a relative bright spot for the Australian economy this year. NAB did point out that business condition assessments remain above their long term averages and are at “solid levels across the economy.” The bank did note that retail confidence was lagging.

The official, third-quarter house price index released at the same time was a mixed bag. On the quarter prices fell by 0.2%, much weaker than the 0.5% rise expected. On the year they chalked up an 8.3% gain, but even that was below the .8% expected and the previous quarter’s 10.2% rise. A modest pullback for prices may not trouble the Reserve Bank of Australia too much given that it is known to be concerned about housing-market froth.

However, given such a patchy run of numbers a fall for the Australian Dollar shouldn’t be a surprise.

Australian Dollar Whacked By Business Confidence, Housing Misses

On its daily chart the Australian Dollar remains locked in the downtrend which has persisted since AUD/USD made its highs for the year back in September. On at least one level this makes eminent sense. The US Federal Reserve is hotly tipped to raise interest rates this week and to continue doing so with reasonable regularity through 2018.

The RBA meanwhile has held its Official Cash Rate at a 1.50% record low since July 2016. Aussie rate-futures markets don’t price in any increase until well into 2019.

Beyond interest-rate differentials another factor weighing on the Australian Dollar is the RBA’s repeated insistence that a higher currency makes life more difficult when it comes to fighting inflation and promoting growth.

However, with that crucial Fed meeting so very close, the USD side of AUD/USD is likely to dominate, and to continue to do so as this year faded out.

Australian Dollar Whacked By Business Confidence, Housing Misses

--- 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