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
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
Mixed
GBP/USD
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
USD/JPY
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
More View more
Real Time News
  • 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/gGOU1RVQzq
  • 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/wrI29FTN41
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here: https://t.co/t9Flsqcxo9 https://t.co/UzzC1bGzRJ
  • 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/zEEUHZBx7g https://t.co/46bdHdOmOV
  • Central banks often deem it necessary to intervene in the foreign exchange market to protect the value of their national currency. Learn how central bank intervention can impact your trading here: https://t.co/8G8mUX4so6 https://t.co/6FokpDbL65
  • Use this technical analysis pattern recognition skills test to sharpen your knowledge: https://t.co/Qgz89PTxnu https://t.co/TwrOBFgIwj
  • Gold prices were crushed this week as yields continued to climb. But with a big spot of support coming in, can buyers bring a bounce ahead of NFP? Get your market update from @JStanleyFX here: https://t.co/E1TTXVJGUm https://t.co/pD4TeAY3ZP
  • Get your snapshot update of the of market open and closing times for each major trading hub around the globe here: https://t.co/BgZLFljIhZ https://t.co/PiLYJDVvtY
  • What suits your style of trading stocks or commodities? Find out what are the differences in these two markets here: https://t.co/BnA07cMV0s https://t.co/453MLny2lu
  • The haven-linked US Dollar may be in a position to benefit in the short-run as economic recovery bets support longer-dated Treasury yields, making them more competitive with stocks. Get your market update from @ddubrovskyFX here: https://t.co/BickxlcuZi https://t.co/OdARp4Z1mh
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.

Forex for Beginners
Forex for Beginners
Recommended by Daniel Moss
Forex for Beginners
Get My Guide
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.

Traits of Successful Traders
Traits of Successful Traders
Recommended by Daniel Moss
Traits of Successful Traders
Get My Guide

--- 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