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
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
Bearish
USD/JPY
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
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
Oil - US Crude
Mixed
Bitcoin
Bullish
More View more
Real Time News
  • $USDCAD is trading within the confines of an ascending channel formation extending off the monthly lows with the upper parallel further highlighting near-term resistance today just above 1.3182/84. Get your USD/CAD technical analysis from @MBForex here: https://t.co/qNJL7aacji https://t.co/V1mNFGfY6Q
  • $AUDUSD continues lower after the RBA indicated a possible rate cut this year https://t.co/isQ1dm1Gg3
  • Here is the $DXY Dollar Index overlaid with the implied change in Fed rates through the end of the year according to FF futures https://t.co/iuAOL6sEBU
  • RT @carlquintanilla: “Today’s CBO report shows ten straight years of trillion-dollar deficits. That’s a sad reflection of our nation’s poor…
  • US Treasury Yields Update: 2-Year: 1.457% 3-Year: 1.443% 5-Year: 1.466% 7-Year: 1.559% 10-Year: 1.642% 30-Year: 2.097% $TNX
  • Commodities Update: As of 19:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: -0.00% Gold: -0.88% Silver: -3.52% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/KfxxIVn4PL
  • #Silver surged to $18.35 on Monday morning as risk aversion helped to boost assets with haven appeal but broke down on Tuesday. Get your market update from @PeterHanksFX here: https://t.co/8bYOAWhdwU https://t.co/ADfKBPBhMt
  • Bundesbank President Weidmann: - Inflation likely to undershoot ECB target for next couple years - September ECB stimulus not necessary to this extent $EUR
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.47%, while traders in US 500 are at opposite extremes with 71.18%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/bXp6LgsTwd
  • RT @LiveSquawk: US Congressional Budget Office (@USCBO) Annual Budget And Economic Outlook https://t.co/OQJv7k07Ap
AUD/USD Rises on Trade War News, Ignores Mixed Employment Data

AUD/USD Rises on Trade War News, Ignores Mixed Employment Data

2018-08-16 02:00:00
Megha Torpunuri,
Share:

Talking Points:

  • AUD/USD higher on US-China trade war news, despite mixed data
  • Positive follow-through unlikely due to dovish Reserve Bank of Australia
  • Risk sentiment and RBA Governor Lowe’s speech in spotlight next

Just started trading AUD/USD? Check out ourbeginners’ FX markets guide!

The Australian Dollar appreciated against its US counterpart after news broke that the Chinese Vice Commerce Minister would visit the United States in late August for trade talks, mostly ignoring the release of local jobs data early into Thursday’s Asia Pacific trading session. The Australian economy lost 3.9k jobs, a sharp fall from both economists’ forecasts of 15.0k jobs and June’s 50.9k jobs. Meanwhile. July’s participation rate slightly decreased to 65.5% from both previous and expected values of 65.5%. Despite the downtick in the unemployment rate to 5.3%, compared to both prior and estimate reports at 5.4%, the economic data indicates that local economic activity may potentially slow as the labor force has diminished.

AUD/USD 5-Minute Chart

AUD/USD Rises on Trade War News, Ignores Mixed Employment Data

However, the risk-on unit’s upside momentum may lack follow-through due to the lack of lasting influence on the Reserve Bank of Australia’s policy implications. Although local economic data has recently started to outperform economists’ expectations, the Reserve Bank of Australia is unlikely to consider a rate hike soon as it has maintained that the 1.50% OCR is appropriate for sustainable growth and their inflation target. On the other hand, the US Federal Reserve has committed to at least two more rate hikes this year, possibly helping the greenback make gains.

Looking ahead, the sentiment-linked Aussie Dollar will closely eye risk trends. Fears of financial contagion from banks’ exposure to the Turkish Lira seem to have momentarily subsided as Qatar offered financial support to Turkey, helping the S&P 500 find a bottom and causing emerging markets to rally. In addition, trade war developments, especially the upcoming US-China trade talks, will continue to impact market sentiment. Furthermore, forward guidance from RBA Governor Phillip Lowe’s speech later today may cause further moves in the Australian Dollar.

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

News & Analysis at your fingertips.