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
EUR/USD
Bearish
Oil - US Crude
Mixed
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
Bullish
More View more
Real Time News
  • The retailer has created an event that sees its sales surpass Black Friday and Cyber Monday combined. Get your market update from @PeterHanksFX here:https://t.co/LCyr0z9DHh https://t.co/xDTXRH1TEj
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.44% 🇳🇿NZD: 0.43% 🇪🇺EUR: 0.19% 🇬🇧GBP: 0.11% 🇨🇭CHF: -0.03% 🇯🇵JPY: -0.31% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/CoczW1YszK
  • US API Stock Changes: #Crude -7.199M #Cushing -2.550M #Gasoline +0.959M #Distillate +0.992M #Oil $CL_F
  • Bitcoin breached the key psychological level of $30,000 for the first time since January The Jan 22 swing low of $28,800 came in to help cauterize support. Get your market update from @PeterHanksFX here:https://t.co/zmlplL9ZqD https://t.co/6R5nFtVFYS
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.37% Gold: -0.28% Silver: -0.70% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/K9Qw88fR9n
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 87.01%, while traders in France 40 are at opposite extremes with 68.82%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/HWcth7b6kv
  • WH Press Sec. Psaki: - More work remains on infrastructure after meeting - Today or tomorrow, a White House team will meet with Senators from both parties
  • Indices Update: As of 20:00, these are your best and worst performers based on the London trading schedule: US 500: 0.01% Wall Street: 0.01% Germany 30: -0.11% France 40: -0.19% FTSE 100: -0.27% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/HdfL6Ct6sE
  • McKesson said to explore sale of European, UK businesses -BBG $MCK $EURUSD $GBPUSD
  • EUR/GBP continues to trade towards the bottom of the trading range. Sentiment remains ‘mixed’ after near term decline in long positioning. Get your market updates from @RichardSnowFX here:https://t.co/i7uESnbkBE https://t.co/rdqrIAUnuG
AUD Looks Past RBA Rate Decision, Eyes RBNZ and Trade Wars

AUD Looks Past RBA Rate Decision, Eyes RBNZ and Trade Wars

Megha Torpunuri,

TALKING POINTS: AUD, RBNZ, TRADE WARS:

  • RBA leaves OCR at record low 1.50%, AUD/USD fails to react
  • Australian Dollar may gain on RBNZ decision later this week
  • US-China trade war tensions continue to weigh on risk appetite

Trade all the major global economic data live and interactive at the DailyFX Webinars. We’d love to have you along.

The Australian Dollar gained slightly against its US counterpart after the Reserve Bank of Australia announced that it would leave its overnight cash rate unchanged at 1.50%, a record low. The rate announcement failed to significantly impact the currency pair, which has been consolidating since mid-June. In addition to the OCR decision, the RBA noted that the unchanged policy is consistent with sustainable economic growth, and that low rates continue to support the local economy. It also added that it expects inflation to be higher than the current 2.1% in 2019 or 2020.

AUD/USD 5-Minute Chart

AUD Looks Past RBA Rate Decision, Eyes RBNZ and Trade Wars

AUD/USD Daily Chart

AUD Looks Past RBA Rate Decision, Eyes RBNZ and Trade Wars

The central bank’s decision to hold its rate steady was widely forecasted, as it has consistently promoted a wait-and-see approach to monetary policy. In fact, overnight index swaps do not price at a better-than-even chance (90.7%) of a rate hike until August 2019. The Australian Dollar may pave its next move following forward guidance from Governor Philip Lowe’s speech on Wednesday.

However, the risk-on currency is likely to find more traction from the RBNZ rate decision later this week. Unlike the RBA’s prior stances, the New Zealand central bank has indicated that its next move may be either a hike or a cut. Recent lackluster New Zealand CPI and employment data could influence rate policy bets in a dovish direction, possibly leading AUD to gain as an alternative to NZD.

See our free guide to learn what are the long-term forces driving Australian Dollar prices!

Looking ahead, the persistent threat of trade war escalation continues to cloud equities, possibly boding ill for the sentiment-linked Australian Dollar. Over the weekend, China announced that it will levy tariffs on approximately $60b of American goods if Trump implements plans of taxing an addition $200b of Chinese products. In addition, National Economic Council Director Larry Kudlow stated that the United States has more ammunition than China in a trade fight, further fueling trade war tensions.

AUD/USD Trading Resources

--- Written by Megha Torpunuri, DailyFX Research Team

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

DISCLOSURES