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
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
Bullish
USD/JPY
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
Oil - US Crude
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
Bitcoin
Bullish
More View more
Real Time News
  • $AUD Australian Dollar preview ahead of employment data due at the bottom of the hour ⬇️ https://t.co/olQgprLfxK
  • UK Labour Party’s Jeremy Corbyn is readying to back second referendum on possible new Brexit deal. – The Times #brexit
  • Heads Up:🇪🇺 (EUR) European Summit in Brussels (Day 1) due at 00:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2019-10-17
  • LIVE IN 30 MIN: Join DailyFX Currency Analyst @ZabelinDimitri for the live coverage of Australian Employment data. #AUD
  • (Asia Pacific AM Briefing) US Dollar Uptrend at Risk, Japanese Yen May Gain as Stocks Sink #USD #Yen #Dollar - https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2019/10/16/US-Dollar-Uptrend-at-Risk-Japanese-Yen-May-Gain-as-Stocks-Sink.html?CHID=9&QPID=917702 https://t.co/Fz9uCmqnQx
  • The Swedish #Krona and Norwegian #Krone will be in for a tense week ahead of #Brexit-related drama and a crucial EU summit which could be a turning point for the EU-UK divorce. Get your market update from @ZabelinDimitri :https://t.co/zjTNQmDHTt https://t.co/Nf4v2aYoB5
  • Bank of England’s Governor Mark Carney: the general posture of the Brexit talks has been encouraging. - BBG #GBP #BOE
  • RBA’s Deputy Governor Guy Debelle states that the growth in housing demand to see an increase in price response. -BBG #RBA #AUD
  • Bank of England Governor Mark Carney mentions that they are very close to a global liquidity trap and that the Fed's Chair Jerome Powell would never bow to political pressure. -BBG #GBP #BOE #FED
  • Reserve Bank of Australia Deputy Governor Guy Debelle: much of Australian construction downturn is still to be expected and, that the RBA sees 7% decline in dwelling investments in the next year. -BBG #RBA #AUD
USD Holds Onto Gains, US GDP Revised Higher - US Market Open

USD Holds Onto Gains, US GDP Revised Higher - US Market Open

2018-08-29 13:15:00
Justin McQueen, Analyst
Share:

Check out the brand new DailyFX trading forecasts for Q3

MARKET DEVELOPMENTS – US GDP STRONGEST IN 4 YEARS AFTER SURPRISE BEAT

AUD: The Aussie is the worst performing currency is the G10 space today after Westpac hiked their home loan rates by 14bps. This is largely due to their recent decline in net interest margins which has been plagued by rising wholesale funding costs, as such, it is possible that the rest of the other big 4 Australian banks will follow suit. This in turn reduces the RBA’s scope to increase interest rates, consequently prompting the RBA to keep rates at record lows for longer. Consequently, the near-term fundamentals remain soft for the Australian Dollar, resistance from 0.7350 through to 0.7400 to cap near term upside. A test for the recent lows at 0.7200 is on the cards.

USD: Second estimate of US GDP data surprises to the upside with a reading of 4.2% vs. Exp. 4%, which is the highest level in 4 years. Subsequently, this has provided allowed the greenback to hold onto its best levels of the day against its major counterparts. Euro fails to break above 1.17, over 3bln worth of option expiries between 1.1650-1.1680 has seen the Euro trade in a relatively narrow range.

Crude Oil: Oil prices are a nudge higher this morning, with Brent crude futures back above $76 a barrel, dismissing yesterday’s slightly bearish API report as focus turns to Iran. Reports from WSJ stated that Iran’s crude oil and condensate exports in August are set to drop below 70mln bpd for the first time since April 2017, ahead of the second round of US sanctions on November 4th. This consequently suggests that countries are indeed following the United States demands in regard to reducing Iranian oil imports.

DailyFX Economic Calendar: Wednesday, August 29, 2018 – North American Releases

USD Holds Onto Gains, US GDP Revised Higher - US Market Open

DailyFX Webinar Calendar: Wednesday, August 29, 2018

USD Holds Onto Gains, US GDP Revised Higher - US Market Open

IG Client Sentiment Index: AUDUSD Chart of the Day

USD Holds Onto Gains, US GDP Revised Higher - US Market Open

AUDUSD: Data shows 59.0% of traders are net-long with the ratio of traders long to short at 1.44 to 1. In fact, traders have remained net-long since Jun 05 when AUDUSD traded near 0.75794; price has moved 3.6% lower since then. The number of traders net-long is 0.3% higher than yesterday and 8.9% higher from last week, while the number of traders net-short is 2.1% higher than yesterday and 12.0% lower from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests AUDUSD prices may continue to fall. Positioning is less net-long than yesterday but more net-long from last week. The combination of current sentiment and recent changes gives us a further mixed AUDUSD trading bias.

USD Holds Onto Gains, US GDP Revised Higher - US Market Open

AUDUSD: Data shows 66.5% of traders are net-long with the ratio of traders long to short at 1.99 to 1. In fact, traders have remained net-long since Jun 05 when AUDUSD traded near 0.75575; price has moved 3.8% lower since then. The number of traders net-long is 4.9% lower than yesterday and 23.9% higher from last week, while the number of traders net-short is 8.9% higher than yesterday and 26.8% lower from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests AUDUSD prices may continue to fall. Positioning is less net-long than yesterday but more net-long from last week. The combination of current sentiment and recent changes gives us a further mixed AUDUSD trading bias.

Five Things Traders are Reading

  1. US Dollar Working on Second Up Day in Two Weeksby Christopher Vecchio, CFA, Sr. Currency Strategist
  2. Crude Oil Price Analysis: Bullish Oil Signals as Iran’s Oil Loadings Drop" by Justin McQueen, Market Analyst
  3. Charts of Interest – DXY, EUR/USD, GBP/USD, and Gold Priceby Paul Robinson, Market Analyst
  4. Trade Wars Latest: Concerns About NAFTA, China Dominate USDby Martin Essex, MSTA, Analyst and Editor
  5. USD Price Analysis: Finding Support Ahead of Q2 US GDP Print” by Nick Cawley, Market Analyst

--- Written by Justin McQueen, Market Analyst

To contact Justin, email him at Justin.mcqueen@ig.com

Follow Justin on Twitter @JMcQueenFX

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

DISCLOSURES

News & Analysis at your fingertips.