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
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
Wall Street
Mixed
Gold
Mixed
GBP/USD
Mixed
USD/JPY
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
More View more
Real Time News
  • Myth or fact? One thing is for sure, there are a lot of misconceptions about trading. Knowing the difference between common trading myths and the reality is essential to long-term success. Find out about these 'myths' here: https://t.co/EDvQdHfIPm https://t.co/MshYqL1y2c
  • Heads Up:🇬🇧 BoE Gov Bailey Speech due at 10:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-03-08
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.85%, while traders in France 40 are at opposite extremes with 66.63%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/JyR3xc98Wr
  • Commodities Update: As of 08:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.96% Silver: 0.61% Gold: -0.22% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/yc6zHLMQjl
  • Forex Update: As of 08:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 0.03% 🇯🇵JPY: -0.02% 🇦🇺AUD: -0.02% 🇨🇦CAD: -0.11% 🇪🇺EUR: -0.15% 🇳🇿NZD: -0.29% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/buujEMQ7YX
  • Indices Update: As of 08:00, these are your best and worst performers based on the London trading schedule: FTSE 100: 0.77% Germany 30: 0.69% France 40: 0.69% Wall Street: -0.11% US 500: -0.53% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/Dy6BFqiMZa
  • Dollar May Rise as Stimulus Boosts Yields, Pound Eyes Bailey Comments - https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/euro_open/2021/03/08/Dollar-May-Rise-as-Stimulus-Boosts-Yields-Pound-Eyes-Bailey-Comments.html
  • What are some monetary policies that could affect Gold this quarter? Get your Gold free forecast here: https://t.co/bTXkGN1CIM #DailyFXGuides https://t.co/E8nwHmBwE6
  • Missed the weekly outlook webinar today? See the recording here: https://t.co/7vz7cXUZfJ #Dollar #stimulus #stocks #gold
  • 🇨🇭 Unemployment Rate (FEB) Actual: 3.6% Previous: 3.7% https://www.dailyfx.com/economic-calendar#2021-03-08
AUDUSD Gains, RBA Lowe Again Ponders Monetary Easing's Limits

AUDUSD Gains, RBA Lowe Again Ponders Monetary Easing's Limits

David Cottle, Analyst

Reserve Bank of Australia Governor Lowe, Canberra Panel Comments, Talking Points:

  • AUD/USD rose as Lowe spoke
  • He noted widespread economic gloom but pointed to the limitations of monetary policy
  • He also suggested more government stimulus in the shape of infrastructure spending

Join our analysts for live, interactive coverage of all major economic data at the DailyFX Webinars. We’d love to have you along.

The Australian Dollar rose Monday after Reserve Bank of Australia Governor Philip Lowe appeared once again to ponder the limits of monetary policy’s effectiveness.

Speaking on a panel in Canberra, Lowe noted that the global economy had slowed and that risks were to the downside still. However he said that it was ‘legitimate to ask’ how effective more monetary easing would be globally and that if everyone is easing, exchange rate effects are offset. In a nutshell cutting Australian rates won’t help boost inflation by weakening the currency if rates head lower in Australia’s trading partners too.

Lowe also said that more infrastructure investment would benefit the Australian economy.

Australian interest rates were cut to a new record low this month, and futures market pricing suggests expectations that the easing process will continue.

The Australian Dollar gained after Lowe spoke, as he appeared to reinforce the message that the bar to deep rate cuts may very well be higher than the markets now think.

Australian Dollar Vs US Dollar, 5-Minute Chart

Central bankers around the world have largely kept monetary policy extremely accommodative since the end of the financial crisis. Clearly if long periods of record low interest rates have failed to spur pricing power, it is indeed legitimate to ask whether even lower rates would do the trick.

Lowe also flagged up European banks as a potential weak spot in the world economy. The Eurozone banking sector is fragmented and progress towards some sort of banking union has been glacial at best.

On its daily chart AUD/USD has bounced quite convincingly from its June lows but clearly remains under pressure. The long-term downtrend from early 2018 remains very much in place and the pair seems to be losing momentum before its previous significant peak.

Australian Dollar Vs US Dollar, Daily Chart

The market clearly sees very little interest-rate support for the Aussie despite Lowe’s warnings that monetary policy cannot be the sole means of economic stimulus.

Resources for Traders

Whether you’re new to trading or an old hand DailyFX has plenty of resources to help you. There’s our trading sentiment indicator which shows you live how IG clients are positioned right now. We also hold educational and analytical webinars and offer trading guides, with one specifically aimed at those new to foreign exchange markets. There’s also a Bitcoin guide. Be sure to make the most of them all. They were written by our seasoned trading experts and they’re all free.

--- Written by David Cottle, DailyFX Research

Follow David on Twitter@DavidCottleFX or use the Comments section below to get in touch!

https://www.dailyfx.com/webinars?re-author=Cottle

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

DISCLOSURES