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
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
Bearish
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • There’s a strong correlation between interest rates and forex trading. Forex is ruled by many variables, but the interest rate of the currency is the fundamental factor that prevails above them all. Learn how interest rates impact currency markets here: https://t.co/5l3O9aHQbL https://t.co/DFEfCIl7zF
  • Thin liquidity can concentrate volatility and nowhere is that more evident than with Dogecoin. $DOGEUSD was down as much as 38% today. Watch for heightened bouts of volatility amid quiet risk trends in the week ahead: https://www.dailyfx.com/forex/video/daily_news_report/2021/04/17/Dollar-Outlook-Ties-Into-Key-Data-Rate-Forecasts-and-Even-Dogecoins-Rally-.html https://t.co/JO7O7zUKe9
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here: https://t.co/zEEUHZjVIG https://t.co/Vv3jZNbLWg
  • 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/BdgFmkzWwW https://t.co/9j004hyzUZ
  • Learning how to trade does not have to feel foreign. Hone your skills and build your confidence with free DailyFX guides today! https://t.co/lnxaQOsgid https://t.co/7myL4vGnt8
  • Using margin in forex trading is a new concept for many traders, and one that is often misunderstood. Margin is the minimum amount of money required to place a leveraged trade and can be a useful risk management tool. Learn about margin trading here: https://t.co/qZCE5asCzM https://t.co/yxE0OmLIP0
  • Entry orders are a valuable tool in forex trading. Traders can strategize to come up with a great trading plan, but if they can’t execute that plan effectively, all their hard work might as well be thrown out. Learn how to place entry orders here: https://t.co/1mnOXUd00T https://t.co/iSrjZTeWwf
  • There are many different types of forex orders, which traders use to manage their trades. While these may vary between different brokers, there tends to be several basic FX order types all brokers accept. Learn about different FX order types here: https://t.co/WeLInepZiD https://t.co/7B0KI8HehW
  • 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/Yl9vM73cHA https://t.co/vGW5BygTXU
  • When it comes to buying and selling forex, traders have unique styles and approaches. Learn about buying and selling forex here: https://t.co/xngExEdFdu https://t.co/kqpJ6oGXgt
Australian Dollar Outlook: AUD/USD, AUD/NZD Levels Ahead of RBNZ

Australian Dollar Outlook: AUD/USD, AUD/NZD Levels Ahead of RBNZ

Peter Hanks, Strategist

Australian Dollar Outlook:

Australian Dollar Outlook: AUD/USD, AUD/NZD Levels Ahead of RBNZ

The Australian Dollar may find itself caught in the crossfire of forex volatility when the Reserve Bank of New Zealand delivers its interest rate decision on Wednesday at 00:00 GMT. With the market widely expecting a 25-basis point cut and subsequent pause on rate reductions, any deviation could spark volatility in the New Zealand Dollar and its cousin – the Australian Dollar – given that the currency pairs have historically shared a strong correlation.

Chart of AUD and NZD Correlation Australian Dollar and New Zealand Dollar Ahead of RBNZ Decision

With that in mind, it is important to take stock of the AUD/USD levels at hand in the event of a monetary policy surprise in the South Pacific. Should the RBNZ stray from market expectations and argue that further cuts are warranted, the New Zealand Dollar and AUD/USD would likely fall under pressure as the growth and interest rate expectations for the region are adjusted lower. Consequently, AUD/USD could threaten the pair’s 2016 low around 0.6827 before taking aim at recent support slightly beneath 0.67.

AUD/USD Price Chart: Daily Time Frame (October 2018 – November 2019) (Chart 1)

AUDUSD Price Chart Australian Dollar Technical Analysis

On the other hand, 0.6895 to 0.6920 marks an area of considerable confluence to the topside, threatening to keep a lid on Aussie price gains. A break above the zone could open the door for a continuation higher in the days to come, a key aspect of my AUD/USD analyst pick which is awaiting bullish confirmation.While AUD/USD and NZD/USD look to wrestle with the relative strength of the US Dollar, AUD/NZD is a pair which is likely to receive a more direct injection of volatility. Further, the potential for outsized moves is greater given the pair’s lower liquidity.

With that being said, Monday’s RBNZ rate decision has the opportunity to fundamentally alter the pair’s landscape. With AUD/NZD enjoying a 2.65% climb in the year-to-date, any indication that the RBNZ will lower rates further could fuel another leg higher, while a pause in easing – as expected - may leave the pair longing for direction alongside plummeting rate cut odds from the RBA.

AUD/NZD Price Chart: Daily Time Frame (August 2018 – November 2019) (Chart 2)

AUDNZD Price Chart New Zealand Dollar Technical Analysis

To that end, AUD/NZD price gains in 2019 assert the pair is leaning higher at this time, but considerations remain. Notably, the pair has struggled to surmount the 1.084 level recently and could threaten to offer resistance prior to the Fibonacci level around 1.089. As the market awaits the Reserve Bank of New Zealand’s decision, follow @PeterHanksFX on Twitter for further updates and analysis and check back at DailyFX for commentary on the decision’s impact.

--Written by Peter Hanks, Junior Analyst for DailyFX.com

Contact and follow Peter on Twitter @PeterHanksFX

Read more:Stock Market Outlook Weakens After US-China Meeting Delayed

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

DISCLOSURES