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
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Bearish
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • There is a great debate about which type of analysis is better for a trader. Is it better to be a fundamental trader or a technical trader? Find out here: https://t.co/aVAzFypAg1 https://t.co/7mc19Gxrvm
  • #Gold prices succumbed to selling pressure as the US Dollar soared this past week What is #XAUUSD facing these next few days and can these fundamental forces extend its selloff? Check out my outlook here - https://www.dailyfx.com/forex/fundamental/forecast/weekly/chf/2020/09/26/Gold-Price-Outlook-Rising-US-Dollar-Sinks-XAUUSD-Will-Losses-Extend.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/gPhy0KoW3W
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/38gTDnpPbn https://t.co/Xtk5g4JQEB
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/3Wked6GBOp https://t.co/SsUguHB39W
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here:https://t.co/1oygcFMFNs https://t.co/aD1ZWhTWZp
  • The price of #oil may continue to trade in a narrow range as the rebound from the September low ($36.13) appears to have stalled ahead of the month high ($43.43). Get your #commodities update from @DavidJSong here: https://t.co/719LgjFmYG https://t.co/SSoqjONUzA
  • The Australian Dollar may extend its slide lower despite the planned easing of Covid-19 restrictions, as the market continues to price in an RBA rate cut on October 6. Get your #currencies update from @DanielGMoss here: https://t.co/HJpngnerzY https://t.co/g6X8ABQDwY
  • The Indian Rupee may be at risk to the US Dollar as USD/INR attempts to refocus to the upside. This is as the Nifty 50, India’s benchmark stock index, could fall further. Get your USD/INR market update here:https://t.co/ed4QR7QQOn https://t.co/gDWYNtm2UY
  • Technical indicators are chart analysis tools that can help traders better understand and act on price movement. Learn more about the importance of technical analysis here: https://t.co/NpC1D8y4Aa https://t.co/Q7TcbrYXjl
  • #Gold prices have plunged nearly 11% off the record highs with a breakout risking further losses. Here are technical trade levels that matter on the XAU/USD weekly chart. Get your #metals update from @MBForex here: https://t.co/7p3jPx6nQd https://t.co/yxymjCHti6
AUD/USD Downtrend at Support Before RBA Speech, Tesla Shares Sink

AUD/USD Downtrend at Support Before RBA Speech, Tesla Shares Sink

2019-07-24 23:00:00
Daniel Dubrovsky, Analyst
Share:

Asia Pacific Market Open Talking Points

  • Financial markets saw varied performance on mixed earnings, US housing data
  • Risk aversion due for Asia after Tesla earnings, North Korea projectile launches?
  • AUD/USD near-term downtrend pauses on rising support ahead of RBA speech

Not sure where the US Dollar is heading next? We recently released the third quarter US Dollar fundamental and technical forecast!

The past 24 hours were a choppy session, with varied performance in FX and equities ahead of key economic event risks such as the ECB and US GDP. Markets had to contend with mixed US earnings and data. While the S&P 500 ended the day 0.47% to the upside, the industrial-heavy Dow Jones fell almost 0.3% as it was weighed by Caterpillar Inc. (-4.48%) and Boeing shares (-3.12%) after earnings reports.

The former noted rising material costs such as tariffs while the latter confronted the possibility of halting production of a version of its popular aircraft series, the 737 Max. Meanwhile, while new US home sales missed expectations in June, they rose 7.0% m/m versus 5.1% anticipated. Overall, the US Dollar was little-changed against a basket of its major counterparts.

Thursday’s Asia Pacific Trading Session

Ahead, the Australian Dollar could be looking at elevated volatility during Thursday’s Asia Pacific trading session. Over the past 24 hours, the sentiment-linked currency saw cautious weakness after the IMF downgraded global growth forecasts. The Aussie was also unable to find much upside momentum despite anticipation ahead of US-China trade talks in the week ahead.

After Wall Street close, Tesla published a dismal earnings report that caused shares to decline over 9% as the company cut its capital expenditure outlook. Later, reports crossed the wires early into Thursday’s session from South Korea that North Korea launched “two projectiles”. This was later confirmed by Japan. S&P 500 futures are now pointing cautiously lower which might bode ill for the Aussie.

Meanwhile, Philip Lowe, the Governor of the Reserve Bank of Australia, is expected to speak later today. Overnight index swaps are pricing in about a 60% probability of a third cut this year by October. As such, markets will be closely eyeing commentary that can either confirm or push back dovish monetary policy expectations.

AUD/USD Technical Analysis

Taking a closer look at the AUD/USD daily chart, the currency pair finds itself sitting right on a near-term rising support channel from the middle of June. This followed an attempt to break above long-term descending resistance from December. If the former breaks, we could be looking at another retest of channel support between 0.6827 and 0.6865 down the road. In the near-term, keep an eye on 0.6911.

AUD/USD Daily Chart

AUD/USD Downtrend at Support Before RBA Speech, Tesla Shares Sink

Charts Created in TradingView

FX Trading Resources

--- Written by Daniel Dubrovsky, Currency Analyst for DailyFX.com

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

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

DISCLOSURES