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
Bearish
Oil - US Crude
Bullish
Wall Street
Bearish
Gold
Bearish
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • Indices Update: As of 19:00, these are your best and worst performers based on the London trading schedule: Germany 30: -0.86% FTSE 100: -1.20% France 40: -1.27% Wall Street: -2.32% US 500: -2.53% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/KjNr7ongtX
  • Nasdaq now down over 3% today, confirming 10% correction territory. $QQQ
  • $USDCHF has continued to strength today, now above the 0.9280 level, trading around the highs hit in late September. The pair has performed strongly since mid February as US rates have continued higher, rising from 0.8900 by nearly 400 pips to its current levels. $USD $CHF https://t.co/qrHY8Sy2sf
  • Against the backdrop of rising bond yields, both the Bank of England and European Central Bank will meet over the next two weeks. Get your market update from @CVecchioFX here:https://t.co/bcdEfLJjJ7 https://t.co/vXmdohw4VK
  • Oil - US Crude IG Client Sentiment: Our data shows traders are now at their least net-long Oil - US Crude since Jan 06 when Oil - US Crude traded near 5,008.80. A contrarian view of crowd sentiment points to Oil - US Crude strength. https://www.dailyfx.com/sentiment https://t.co/5dv539nKye
  • US Indices are struggling again today. The Nasdaq is now down 10% from the record highs of mid February, entering correction territory. The $VIX has risen to its highest level since last week's bond market event. DOW -1.31% NDX -2.37% SPX -1.48% RUT -2.68% $DIA $QQQ $SPY $IWM https://t.co/VKbWrCcymL
  • #Bitcoin battle-lines drawn. . . Updated 240min $BTCUSD https://t.co/epcJWYYoQh https://t.co/duPBPAM0Ps
  • Overall, Powell sticks with the current Fed stance and hence the move with the USD and UST yields higher, while gold tests 1700 https://t.co/78ds2uS2i9
  • #Gold is hitting fresh nine-month low in the aftermath of Fed Chair Powell's speech, falling to currently trade right around $1,700 for the first time since June of 2020. $XAU $GLD https://t.co/6OJ5Fn4Kn8
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.38%, while traders in Germany 30 are at opposite extremes with 70.84%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/Lgws7z82Gc
Asian Shares Trim Prior Gains, AUD/USD At Pivotal Point Post RBA

Asian Shares Trim Prior Gains, AUD/USD At Pivotal Point Post RBA

Daniel Dubrovsky, Strategist

Asian Stocks Talking Points:

  • Asian stocks trim prior gains given a lack of catalysts to fuel a recovery in sentiment
  • The RBA left rates unchanged at 1.50% as expected, offered slight Aussie weakness
  • AUD/USD still remains at a pivotal point as it faces barriers for a lasting reversal

Find out what retail traders’ Australian Dollar buy and sell decisions say about the coming price trend!

Asian stocks headed cautiously lower by Tuesday afternoon trade after a revival in sentiment from the beginning of this week lost momentum. There, the markets seemed to have cheered a better-than-expected US jobs report from Friday and shrugged off trade concerns as China threatened to call off deals with the world’s largest economy. Now, a lack of updates on this front have markets eager for fresh catalysts.

In the meantime, the threat of tighter lending conditions may have remerged into the eyes of investors following a rather choppy week for risk trends. Just before Asian market come online today, the US Dollar managed a partial recovery as local bond yields rallied. This signaled firming Fed rate hike expectations. In fact, the greenback was slowly rising throughout the beginning of Tuesday’s session.

The Nikkei 225 was higher at open, but declined thereafter and was heading lower to finish little changed. Australia’s ASX 200 met a similar fate but fell more aggressively and was down about 0.30% at the time. South Korea’s KOSPI also declined abruptly after market open, but trimmed some of its losses and was down about 0.13%. Chinese shares edged a little higher, with the Shanghai Composite up more than 0.20%.

RBA Rate Decision: Status Quo Rate Hold, AUD/USD Cautiously Lower

The Australian Dollar fell, albeit lightly, on a status quo RBA rate hold at 1.50 percent as expected. Comparing the revised statement to the prior one, there was not a meaningful change to their tone that would insinuate moving away from the patient stance on moving rates. The central bank reiterated that they are where they need to be for sustainable growth in the economy and achieving the inflation target over time.

Looking at local government bond yields, they declined as the monetary policy decision crossed the wires. This suggests that some hawkish bets were disappointed. Yesterday, rosy Australian retail sales and corporate profits saw AUD/USD rise to its highest since April. Some of those bets on the Aussie may have been unwinded.

Australian Dollar price action on RBA rate decision

AUD/USD Technical Analysis: At Key Pivotal Point

As mentioned earlier, AUD/USD put in an impressive push higher on Monday but looking at the daily chart below, it remains just below critical resistance areas. For the pair to keep climbing and potentially reverse some of its downside progress since February, AUD/USD has to get above the near-term falling resistance (red line on the chart below). However, this area is closely aligned with the January 2016 trend line.

A continuation of its ascent would then place the 76.4% Fibonacci retracement at 0.7718 as the next target followed by the April 19th high at 0.7813. On the other hand, if AUD/USD falls near-term support could be the 50% midpoint of the retracement at 0.7612 followed by 0.7591. A fall below those would expose a rising support channel that is made up of the higher lows set in May.

Australian Dollar prices at pivotal point after RBA rate decision

AUD/USD Trading Resources:

--- Written by Daniel Dubrovsky, Junior Currency Analyst for DailyFX.com

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

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

DISCLOSURES