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
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
Bearish
Wall Street
Bullish
Gold
Bearish
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • Indices Update: As of 18:00, these are your best and worst performers based on the London trading schedule: US 500: 0.12% France 40: 0.07% Germany 30: 0.06% FTSE 100: -0.04% Wall Street: -0.06% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/z277OvYl2T
  • Australian #Dollar Forecast: #Aussie Breaks 2021 Range- $AUDUSD Rally at Risk - https://t.co/kV3Jr9KSqW https://t.co/3259U46BNn
  • Gold plunged into a critical uptrend support and the focus is on a reaction off this threshold. Get your $XAUUSD market update from @MBForex here:https://t.co/9647GKHVTa https://t.co/VOxFsFU8rf
  • NY Fed accepts $813.6 billion in reverse repo operations, a new record high $USD $DXY
  • Bostic sees first hike in 'late 2022' and doesn't want to hike until Taper is complete. If the Fed follows the three quarter spacing timeline it would suggest roughly: Dec 2022 hike < March 2022 finish taper < any month now start taper https://t.co/j25E9vAUc1
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 88.94%, while traders in GBP/JPY are at opposite extremes with 73.25%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/6aDy5vbueT
  • Note: Bostic is a voter this year, but not a voter in 2022 or 2023 https://t.co/qs3RWJ2v3Z
  • - Would prefer to hold off on raising interest rates until taper is complete
  • - Does not have a strong view on whether to taper mortgages before treasuries - Does not want to be premature in pulling back bond purchases, but market is functioning now
  • - Close to meeting substantial further progress standard to start bond tapering, appropriate to begin debate
AUD Targets 9-yr Low Amid Rising US Yields and Trade War Tensions

AUD Targets 9-yr Low Amid Rising US Yields and Trade War Tensions

Justin McQueen, Analyst

AUDUSD Analysis and Talking Points

  • US-China tensions could Pressure AUD
  • US Yields Moving in Favour of USD Buying vs. AUD Selling

Check out the brand new Q4 FX forecast guides

US-China tensions could Pressure AUD

For much of 2018 the Australian Dollar has largely been held captive from its Chinese proxy status, which has seen the currency drop 9% against the greenback. Eyes will be on the 2018 low (0.7066) as US Vice President Pence addresses the issues surrounding China, which could potentially escalate the current tensions between the US and China. With no trade deal in sight, headline risk continues to remain elevated, leaving the Australian Dollar vulnerable to further losses.

US Yields Moving in Favour of USD Buying vs. AUD Selling

Yesterday saw US bond yields in the 10yr hitting the highest level since the financial crisis after reaching 3.12%. This had largely been sparked by the slew of firm US data releases suggesting that the strong growth momentum remains on track, while Fed Chair Powell had also noted that the central bank could raise interest rates above the neutral level. Consequently, rate differentials continue to favour AUDUSD selling, consequently increasing the scope for a move towards the January 2016 low at 0.6827.

AUDUSD Price Chart: Daily Time Frame (September 2015 – October 2018)

AUD Targets 9-yr Low Amid Rising US Yields and Trade War Tensions

The bearish trend in AUD shows no signs of abating with the currency continuing to reject the descending trendline stemming from the 2018 high, while a series of low highs reaffirms this view. A close below the 76.4% retracement at 0.7137 increases the scope for a move towards 0.70 before the January 2016 low situated at 0.6827.

--- 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