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
Oil - US Crude
Mixed
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
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
GBP/USD
Mixed
USD/JPY
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
More View more
Real Time News
  • The tension from March continues to subside, allowing for the $USD to slide to fresh two-month-lows. Get your currencies market update from @JStanleyFX here: https://t.co/bRSRjUqg6Z https://t.co/Q35YpIZEd2
  • López Obrador hopes #USMCA will help tighten trade relationships between the US and Mexico. Get your currencies market update from @HathornSabin here: https://t.co/bZrUKSCGaS https://t.co/MZ7UoiWWRj
  • The $AUD may suffer as relations between Australia and China deteriorate amid dwindling growth prospects. Euro traders will be closely watching progress in talks about a €500b recovery fund proposal. Get your market update from @ZabelinDimitri here: https://t.co/LkEFJViPWY https://t.co/sofO135ElG
  • The US Dollar could rise against #ASEAN currencies such as the Singapore Dollar as US-China tensions seem to escalate. The Indian Rupee is also looking ahead of local 1Q GDP data. Get your ASEAN currencies market update from @ddubrovskyFX here:https://t.co/LkEFJViPWY https://t.co/ZGFaQQ3Hr2
  • The #Euro is the big driver here for DXY as it is 57% of the index. It is rising now and trying to break above the March 27 high at 11147. Get your $EURUSD technical analysis from @PaulRobinsonFX here:https://t.co/6gt3F9LuGP https://t.co/73SaL5AeXD
  • U.S. Market Analyst at https://t.co/JsVsSmefgR, Shain Vernier covers - ✔️ Safe haven assets in volatile markets ✔️ Central banks and governments ✔️ How will commodities trade in a recession Only on Trading Global Markets Decoded #podcast. Tune in here: https://t.co/1UmEzEbwiy https://t.co/EIC9YqfTec
  • Anybody else think that casting directors in movies are some of the most underrated people when it comes to giving a film/series credit?
  • No https://t.co/EoBltaP17k
  • Crude #oilprices may face heightened liquidation pressure as the cycle-sensitive #commodity finds itself under the pressure of resilient resistance and a vulnerable, multi-week rising channel. Get your crude #oil market update from @ZabelinDimitri here: https://t.co/cGPX4qcOH1 https://t.co/0U4JMJVFuf
  • The @ecb will likely boost its Pandemic Emergency Purchase Program at Thursday’s meeting of its Governing Council; a move that could give the #Euro a lift. Get your currencies market update from @MartinSEssex here: https://t.co/I4PbmJNG1z https://t.co/hu6Ld1KdDB
Asia AM Digest: Trade War Fears Kept Falling, USD and CAD Rose

Asia AM Digest: Trade War Fears Kept Falling, USD and CAD Rose

2018-04-05 23:30:00
Daniel Dubrovsky, Analyst
Share:

To get the Asia AM Digest every day, SIGN UP HERE

Thursday was a day of broad US Dollar strength which weighed against most of the major peers. An improvement in sentiment saw Wall Street finish another day higher as trade wars fears continued to ebb from the past few days. In fact, the greenback brushed aside a larger US trade deficit and more jobless claims.

Earlier in the day, Donald Trump’s top economic adviser Larry Kudlow certainly helped fuel this behavior. Mr. Kudlow mentioned that he expects the US and China to get an agreement on a trade deal “over a period of time”. Officials seem more confident that their progress won’t end up in Chinese product tariffs.

Needless to say, the anti-risk Japanese Yen didn’t perform so well. Despite the ‘risk on’ setting, sentiment-linked currencies like the Australian and New Zealand Dollars finished the day mostly lower. Perhaps this was a result of investors being more interested in the increasingly higher-yielding greenback.

Once currency that stood tall above all else was the Canadian Dollar. The Loonie was bolstered by continued progress on NAFTA talks. Canada’s Prime Minister Justin Trudeau said that talks are moving forward in a ‘significant way’. Meanwhile Mr. Trump said that a deal will likely come ‘fairly soon’. With that in mind, USD/CAD prices could continue to fall amidst a reversal pattern.

Meanwhile the British Pound was another poor performer. Though at the time, it was initially unaffected by by the weakest UK services PMI in 20 months.

DailyFX Economic Calendar: Asia Pacific (all times in GMT)

Asia AM Digest: Trade War Fears Kept Falling, USD and CAD Rose

DailyFX Webinar CalendarCLICK HERE to register (all times in GMT)

Asia AM Digest: Trade War Fears Kept Falling, USD and CAD RoseAsia AM Digest: Trade War Fears Kept Falling, USD and CAD RoseAsia AM Digest: Trade War Fears Kept Falling, USD and CAD Rose

IG Client Sentiment Index Chart of the Day: AUD/USD

Asia AM Digest: Trade War Fears Kept Falling, USD and CAD Rose

CLICK HERE to learn more about the IG Client Sentiment Index

Retail trader data shows 60.2% of AUD/USD traders are net-long with the ratio of traders long to short at 1.51 to 1. In fact, traders have remained net-long since Mar 22 when AUD/USD traded near 0.77738; price has moved 1.1% lower since then. The number of traders net-long is 5.3% higher than yesterday and 8.0% higher from last week, while the number of traders net-short is 2.4% lower than yesterday and 8.2% lower from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests AUD/USD prices may continue to fall. Traders are further net-long than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger AUD/USD-bearish contrarian trading bias.

Five Things Traders are Reading:

  1. NFP Preview: Price Action Setups Around the US Dollar by James Stanley, Currency Strategist
  2. Sentiment Towards Bitcoin Shifts Signaling a Strong Contrarian Bias by Dylan Jusino, DailyFX Research
  3. USD/CAD Technical Outlook: Trade Setups for NFP, Canada Jobs by Michael Boutros, Currency Strategist
  4. Central Bank Weekly: US Dollar Taking Few Cues from Fed Rate Pricingby Christopher Vecchio, Senior Currency Strategist
  5. US Dollar Catches a Bid Ahead of Non-Farm Payrolls (NFP)by Michael Boutros, Currency Strategist

To get the Asia AM Digest every day, sign up here

To get the US AM Digest every day, sign up here

To get both reports daily, sign up here

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

DISCLOSURES

News & Analysis at your fingertips.