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
Mixed
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
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • RBNZ Governor Orr says housing issues can't be fixed by financial policies alone - BBG
  • The New Zealand Dollar looks poised to extend its push higher against its haven-associated counterparts on robust economic data and a less dovish stance from the RBNZ. Get your $NZD market update from @DanielGMoss here:https://t.co/vytr4OR1Jy https://t.co/zvDlQ5fmb5
  • Commodities Update: As of 03:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.78% Gold: -0.58% Silver: -0.84% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/Pcqr2Vk3gY
  • Forex Update: As of 03:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.75% 🇦🇺AUD: 0.35% 🇨🇦CAD: 0.22% 🇪🇺EUR: 0.04% 🇨🇭CHF: -0.01% 🇯🇵JPY: -0.01% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/ZAtTsinpiv
  • SPDR Gold Trust (GLD) - the world's largest gold ETF - has seen accelerated redemptions in recent weeks alongside falling bullion prices. Covid-19 vaccine breakthroughs may have contributed most to gold's fallout as stimulus hopes fade. https://t.co/iv1w40Z3Qg
  • RBA Deputy Governor Debelle says asset prices being underpinned from low rates - BBG
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 93.41%, while traders in NZD/USD are at opposite extremes with 74.57%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/YRG793NLnA
  • Update on #Cryptocurrencies #BITCOIN -0.08% #BITCOINCASH +7.05% #ETHEREUM +1.20% #RIPPLE +5.90% #LITECOIN +1.83%
  • RBA Deputy Governor Debelle says yield curve rates have dragged on Australian Dollar $AUDUSD
  • Do you know the difference between investing and trading? Because while the goal might seem the same, they're very different things .Learn more here. https://t.co/fG6fNEPj9q https://t.co/A9kstu4ksh
AUD/USD Prices Buoyed by RBA, GDP and Trade Wars in Focus

AUD/USD Prices Buoyed by RBA, GDP and Trade Wars in Focus

2018-09-04 04:50:00
Megha Torpunuri,
Share:

TALKING POINTS: AUD/USD, RBA, GOVERNOR LOWE, GDP, TRADE WARS:

  • Australian Dollar rose after the RBA maintained 1.50% OCR, noted eventual pickup in CPI
  • AUD/USD continues to be bearish, but downside momentum may be slowing
  • RBA Governor Lowe’s Speech, 2Q GDP, and US-China tariffs in the spotlight next

Just getting started trading the Australian Dollar? See our beginners’ guide for FX traders to learn how you can apply this in your strategy!

The Australian Dollar spiked against its US counterpart after the Reserve Bank of Australia maintained its overnight cash rate at the record low of 1.50% at its September meeting. The monetary policy authority stated that low rates continue to support the Australian economy, adding that its unchanged policy is consistent with meeting the 2% inflation target and ensuring sustainable economic growth. The RBA also added that there is likely to be gradual progress in jobless rate and CPI figures, and that it sees inflation in 2019 and 2020 to be higher than currently.

AUD/USD Chart (5-minute)

AUD/USD Prices Buoyed by RBA, GDP and Trade Wars in Focus

Chart prepared in TradingView

Despite the uptick in AUD prices, follow-through is likely to amount to mainly trimming earlier losses sustained against the US Dollar earlier in Tuesday’s trading session. The Aussie Dollar has suffered against the greenback for the majority of this year, as the pair has been engaged in a downtrend channel beginning in February 2018, possibly breaking December/May 2016 lows of 0.7160 or even testing below the 0.70 figure. Slowing economic activity and political uncertainty due to a shakeup in Prime Ministers have led the Australian Dollar to sink as of late. However, positive RSI divergence suggests that downwards momentum is ebbing, potentially leading prices for the risk-on unit to either rally or consolidate. Investors should look for a break below December 2016 lows for confirmation before making next moves.

AUD/USD Chart (Daily)

AUD/USD Prices Buoyed by RBA, GDP and Trade Wars in Focus

Chart prepared in TradingView

Looking ahead, the Australian Dollar may continue to pare earlier losses following forward guidance from RBA Governor Lowe’s speech later today. The currency also faces the release of second quarter year-over-year growth statistics, which are expected to decrease to 2.8% from the prior 3.1%. Furthermore, July’s trade balance figures and local housing data are to be released later this week.Finally, risk trends continue to play a large role for the pro-risk Aussie Dollar, which will be closely eyeing the implementation of $200B of US tariffs on Chinese imports set to be in effect on September 5th. As for American economic data, August’s change in non-farm payrolls and unemployment rate may cause some volatility for the currency pair as well.

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