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
Bullish
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
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
Wall Street
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
Gold
Bullish
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
  • USD/JPY Price Outlook: Dollar-Yen Undermined by Fiscal Stimulus Hopes Link to Analysis via @DailyFX: https://www.dailyfx.com/forex/market_alert/2020/10/20/usdjpy-usd-jpy-price-outlook-dollar-yen-undermined-by-stimulus-hopes.html $USDJPY $USD $JPY #FX #Forex #Trading https://t.co/yNss3yhgt7
  • It’s been relatively quiet in FX-land, but the USD did push below a big zone of support earlier today. Get your $USD currency pairs technical analysis from @JStanleyFX here:https://t.co/ZC8g3lVxoO https://t.co/lchSrr9hBO
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Silver: 1.02% Gold: 0.15% Oil - US Crude: -1.06% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/SN5ZJQwiRu
  • White House Chief of Staff Mark Meadows: -Mnuchin and Pelosi made good progress on stimulus talks today -We still have a ways to go toward reaching a deal -Talks productive enough to continue again tomorrow -Trump admin offer currently stands at $1.88-trillion
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.81%, while traders in EUR/USD are at opposite extremes with 73.16%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/PUSjs4XLSS
  • US Treasury opposes extension of Federal Reserve's Municipal Lending Facility (MLF) -BBG $USD $SPX $XAU $RUT $DJI
  • Netflix 3Q earnings shows EPS at $1.74 vs expectations of $2.13 on revenue of $6.44 Bln vs expectations of $6.38 Bln. Not the greatest start for FAANG earnings
  • As of today, it is officially two weeks until the #2020Election with the final presidential debate coming up on October 22. Crazy to think how fast time flies.
  • Indices Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Wall Street: 0.01% US 500: -0.01% Germany 30: -0.19% FTSE 100: -0.28% France 40: -0.40% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/zxL5TzfUnp
  • US Dollar Price Action Setups: EUR/USD, AUD/USD, GBP/USD https://www.dailyfx.com/forex/video/live_events/2020/10/20/US-Dollar-Price-Action-Setups-EURUSD-EUR-USD-AUD-USD-AUDUSD-GBP-USD-GBPUSD.html https://t.co/zzMSzNAu7E
AUD/USD Hits Session Low. China CPI Tops Forecasts, PPI Wilts

AUD/USD Hits Session Low. China CPI Tops Forecasts, PPI Wilts

2019-09-10 01:50:00
David Cottle, Analyst
Share:

Australian Dollar, China Consumer Price Index Talking Points:

  • Chinese CPI came in just above forecasts
  • PPI meanwhile remained weak
  • This might make life tricky for policymakers if it goes on

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 slipped to session lows on Tuesday as Chinese inflation data came in a little stronger than expected at the consumer level while factory gate prices continued to wilt.

August’s official Consumer Price Index rose 2.8% on the year, above the expected 2.7% rise and matching July’s gain. Producer prices slipped 0.8%. Their fall accelerated from the 0.3% contraction seen in the previous month, but it wasn’t as severe as the expected 0.9% slide.

There is a possible conundrum here for policy markets. The quite-elevated level of consumer prices may suggest that Beijing will have to take measures to rein them in, but weak producer prices suggest that investment and employment may already be coming under pressure.

Given that it’s not surprising perhaps that the data should have produced a modest, risk off move against the Aussie.

Australian Dollar Vs US Dollar, 5-Minute Chart

Australia’s vast raw-material export links with China can see the Australian Dollar act as the foreign exchange market’s favorite liquid bet on the Chinese economy.

On its daily chart the Australian Dollar continues to reap the benefit of a thaw in trade relations between China and the US.

After many fractious weeks, high-level talks between the two are apparently still on next month. US Treasury Secretary Steven Mnuchin said on Monday that a ‘conceptual agreement’ exists for enforcement around intellectual property theft- a major bone of contention. It has also been reported that China offered last week to increase its purchases of US agricultural products if restrictions on telecom giant Huawei were lifted and tariff rises delayed.

However Mnuchin also said that he expects the Governor of the People’s Bank of China to attend the next round of trade talks as he wants to discuss the level of the Yuan.

AUD/USD is at highs not seen since late July as this better trade tone has investors reassessing global growth prospects to which the Aussie’s performance is so often linked.

Australian Dollar Vs US Dollar, Daily Chart

For all that ot’s well worth bearing in mind that AUD/USD remains close to eleven year-lows and well within the long downtrend channel which has endured on the daily chart since late 2018.

The Australian currency still faces record-low interest rates and a market certain that they will be falling further yet. This domestic reality is likely to reassert itself at some point even if for the moment AUD/USD is driven higher by broader risk themes.

Australian Dollar 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!

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

DISCLOSURES