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
Bearish
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Mixed
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • Copper is on track to make a sixth consecutive monthly gain as prices inch towards its all-time high. The global backdrop remains supportive despite a short-term pause in the rally. Get your market update from @FxWestwater here:https://t.co/STEYeIG042 https://t.co/R794ENkS3c
  • Retail trader signals still hint that the Dow Jones and S&P 500 may be at risk, placing the focus on year-long rising trendlines to see if dominant upside biases hold.Get your market update from @ddubrovskyFX here:https://t.co/lFpzIFNmzW https://t.co/FoHTLDJWJe
  • The path for the Japanese Yen seems to favor the downside looking at a majors-based index. USD/JPY may rise within its Ascending Channel, but there is some scope for a healthy correction. Get your market update from @ddubrovskyFX here:https://t.co/7XFJiCYYEM https://t.co/KfLyB2t1jP
  • The British Pound’s recent slip lower against its major counterparts may prove short-lived. Key levels to watch for GBP/USD, GBP/JPY, GBP/CHF and EUR/GBP. Get your $GBP market update from @DanielGMoss here:https://t.co/Y48cF2qi9M https://t.co/ia3Bgq0ZTp
  • Senate Democrats reach deal on jobless aid -BBG
  • The US Dollar faces its next key tests against ASEAN FX following gains in USD/SGD, USD/IDR, USD/PHP and USD/THB. Are the breakouts losing momentum? Get your market update from @ddubrovskyFX here:https://t.co/joPnWIcxEN https://t.co/4QAlUyD98V
  • Heads Up:🇨🇳 National People's Congress due at 00:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-03-06
  • Positive vaccine progress, fiscal stimulus hopes and an unperturbed Federal Reserve may open the door for long-term Treasury yields to continue pressing higher, and in turn weigh on gold prices. Get your market update from @DanielGMoss here:https://t.co/TdGhZ82s8r https://t.co/w6YS6Gl11K
  • Forex Update: As of 21:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.07% 🇨🇭CHF: -0.24% 🇳🇿NZD: -0.36% 🇬🇧GBP: -0.41% 🇪🇺EUR: -0.50% 🇦🇺AUD: -0.54% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/EK7xQumFxO
  • Commodities Update: As of 21:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.33% Gold: 0.21% Silver: -0.58% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/P7gJseotDu
AUD/USD, ASX 200 Fixed on US Jobs Data as RBA Hints Low Rates to Stay

AUD/USD, ASX 200 Fixed on US Jobs Data as RBA Hints Low Rates to Stay

David Cottle, Analyst

Australian Dollar, ASX, Reserve Bank of Australia Monetary Policy Statement, Talking Points:

  • The RBA expects a quick growth bounce back from coronavirus weakness
  • Borrowing costs will likely not rise until this has been seen
  • The market has heard this before and is looking to US payroll data with some trepidation

The Australian Dollar and the ASX 200 equity benchmark remained fixed on looming US labor market data on Friday, with the Reserve Bank of Australia’s repeated pledge not to raise interest rates until the coronavirus’ effects have passed having little effect.

The RBA’s monthly monetary policy statement was not substantially different in tone from that which accompanied its decision to leave the key Official Cash Rate alone at its record low of 0.25% this month. The central bank of course noted the contagion’s terrible effect on the global economy, but predicted that the knock-on 6% fall in Australian gross domestic product which it predicts for 2020 will be reversed in 2021.

The jobless rate is expected to have nearly doubled in the year’s first half but, again, the RBA expects it to recover fairly quickly. Consumer price inflation has been stubbornly low in Australia for a couple of years, but the RBA expects to see it back within the 2-3% target range by the second half of 2021. It seems that interest rates will not rise until that is durably the case.

Of course, like all major markets, Australia is looking ahead to official US jobless figures, still arguably the key single event in the monthly global data round. A horror show is expected, with more than twenty million jobs expected to have gone, but the market has been well primed for this by other numbers already released.

AUD/USD had inched up as Friday’s Asian session got under way, and the process continued after the RBA release.

Australian Dollar Vs US Dollar, 5-Minute Chart
How to Use IG Client Sentiment in Your Trading
How to Use IG Client Sentiment in Your Trading
Recommended by David Cottle
Improve your trading with IG Client Sentiment Data
Get My Guide

The ASX 200 meanwhile has risen appreciably as have other risk-correlated assets from its virus-inspired March lows. Investors liked the massive monetary and fiscal responses seen around the world and are hopeful that various economies will now emerge gingerly from lockdowns. However, the prospect of just such terribly weak economic numbers as the US seems likely to provide later has given investors pause, as can be seen in the broad range trade now dominant for the ASX.

ASX 200, Daily Chart

Australian Dollar, ASX 200, 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