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
More View more
Real Time News
  • 🇨🇭 Balance of Trade (SEP) Actual: CHF4.4B Previous: CHF4.5B https://www.dailyfx.com/economic-calendar#2021-10-19
  • Heads Up:🇨🇭 Balance of Trade (SEP) due at 06:00 GMT (15min) Previous: CHF4.5B https://www.dailyfx.com/economic-calendar#2021-10-19
  • Heads Up:🇨🇳 FDI (YTD) YoY (SEP) due at 06:00 GMT (15min) Previous: 22.3% https://www.dailyfx.com/economic-calendar#2021-10-19
  • MACD who? The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA). Find out how you can incorporate MACD into your trading strategy here: https://t.co/ZNs4QhQGQ6 https://t.co/Q6ZyB8I4cP
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.84%, while traders in GBP/JPY are at opposite extremes with 76.20%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/IMWFZ1FT51
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency: https://t.co/EfWEACQ6Cz https://t.co/FxRLDVBvLq
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.58% 🇦🇺AUD: 0.56% 🇪🇺EUR: 0.35% 🇨🇦CAD: 0.29% 🇬🇧GBP: 0.29% 🇯🇵JPY: 0.18% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/5fwfLGIp36
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: France 40: 0.15% Germany 30: 0.13% FTSE 100: 0.09% US 500: 0.01% Wall Street: -0.04% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/v4CQ9vY94q
  • Further your forex knowledge and gain insights from our expert analysts @ddubrovskyFX and @FxWestwater on JPY with our free Q4 market analysis guide, available for free today.https://t.co/mzeJ5x73N3 https://t.co/hF59qq3gyG
  • The Fed 2022 rate forecast is at nosebleed levels, but the Dollar still isn't following along. Will it be drug lower if the outlook sours? And what will happen to the S&P 500 as it closes back in on its record high? https://www.dailyfx.com/forex/video/daily_news_report/2021/10/19/SP-500-Rally-to-Record-Will-Flag-Dollar-Anchored-as-Fed-Forecasts-Surge.html https://t.co/5QL5QSMFnc
Australian Dollar Trades Near Pre-COVID Levels Following Caixin PMI

Australian Dollar Trades Near Pre-COVID Levels Following Caixin PMI

Daniel Moss, Analyst

AUDUSD, Caixin PMI Talking Points:

  • The Australian Dollar surged above 67 cents as markets renew appetite for risk
  • Upbeat Caixin Manufacturing PMI may support topside move, as relaxing of restrictions boosts manufacturing sector
  • AUD/USD eyeing key resistance at the February high, as investors look forward to the RBA rate decision on June 2nd

The Australian Dollar has pushed back above the March high (0.6685) as the Caixin Manufacturing PMI update for May beat market expectations (50.7 vs 49.6 forecast) and signaled growth within the hard-hit sector.

NBS Non-Manufacturing (53.6) and Manufacturing PMIs (50.6) released over the weekend, although slightly missing forecasts, were also upbeat and may provide some light at the end of the tunnel for those economies still restricted due to the COVID-19 outbreak.

With export orders registering five consecutive months of contractionary prints (below 50.0), focus will turn to the fiscal response announced at the National People’s Congress and whether Beijing’s largest stimulus package since the 2008 global financial crisis (GFC) will be enough to continue supporting the local economy as global demand remains at historically low levels.

AUD/USD 5-Minute Chart

Image of AUD/USD rate 5-minute chart

Source: Trading View

Price action reflects the inconsequential nature of the most recent PMI release from China, as the AUD begins to lose ground gained earlier in the session. This may be due to the market’s broad reaction to President Donald Trump’s speech over the weekend regarding China, and his lack of specifics around possible counter-measures to the introduction of Beijing’s security law in Hong Kong.

Image of DailyFX economic calendar

Despite the increasing tensions between the US and China, the Australian Dollar has been incredibly resilient on its run back to pre-crisis levels, up as much as 22% from the March low (0.5506) as it now begins to test the key resistance zone at the February-highs (0.6750 – 0.6775). Investor attention now turns to the RBA interest rate decision tomorrow, with the expectation that the Australian central bank will keep the official cash rate (OCR) and three-year bond yield target at the record low of 0.25%.

Governor Philip Lowe and his committee members have been relatively upbeat compared to their major counterparts, and should this positivity continue we could see the AUD/USD exchange strengthen further, with the 0.70-level a key area of interest. However, with the relationship between China and Australia becoming increasingly strained over calls for an independent investigation into the origin of COVID-19, future retaliatory tariffs on Australian exports could have devastating consequences on an economy that relies on China for 31% of its yearly exports.

US-Sino developments will be key to the long-term direction of the AUD, with any escalation possibly bringing the strength of the local currency to an abrupt halt.

--- Written by Daniel Moss

Follow me on Twitter @DanielGMoss

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

DISCLOSURES