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
GBP/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
More View more
Real Time News
  • *Reminder: Weekly Strategy Webinar tomorrow morning at 8:30am ET on DailyFX! https://t.co/lxd5fZ5LG7
  • (Weekly Fundy) Crude Oil May Rise as Covid Case Growth Slows. WTI Eyes OPEC Outlook, Evergrande #CrudeOil #WTI #OPEC #Evergrande https://www.dailyfx.com/forex/fundamental/forecast/weekly/title/2021/09/26/Crude-Oil-May-Rise-as-Covid-Case-Growth-Slows-WTI-Eyes-OPEC-Outlook-Evergrande.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/76e2aGf3p0
  • Recessions can devastate the economy and disrupt the fortunes of individuals, businesses, and investors. But economic decline in the business cycle is inevitable, and your trading can be defined by how you respond to crisis. learn how to prepare here: https://t.co/e4Cnoc1dk0 https://t.co/NhsMS1EY4b
  • We are heading into the final trading days for the month of September and event risk thins out amid the $SPX's rebound. This is what history says for the 39th week of the year and here is my take on the variable factors: https://www.dailyfx.com/forex/video/daily_news_report/2021/09/25/SP-500-and-Dollar-Have-Different-Views-for-Last-Week-of-September.html https://t.co/4OBVmrvI7I
  • Further your forex knowledge and gain insights from our expert analysts on AUD with our free guide, available today: https://www.dailyfx.com/free-trading-guides?ref-author=social#forecastschoices=AUD?QPID=30472&CHID=9 https://t.co/LHJi7CNFmM
  • $EURUSD https://t.co/KZyXX6p2oI
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Find out about the recent history of ISM data, how to track it, and how to trade its release here: https://t.co/MZtBh8pYG3 https://t.co/1zNf5dpDjU
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here: https://t.co/vg7w10la3j https://t.co/z8z6BNudn5
  • #PELOSI SAYS WE ARE GOING TO PASS THE INFRASTRUCTURE BILL THIS WEEK PELOSI SAYS SHE WILL NEVER BRING TO THE HOUSE FLOOR A BILL THAT DOESN'T HAVE THE VOTES TO PASS $USD $SPX $XAUUSD
  • Short-term uncertainties to keep the pressure on equity markets. Get your weekly equities forecast from @JMcQueenFX here: https://t.co/JLMDPZKvN8 https://t.co/YbdJnwoqj1
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