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
Bullish
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
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
Gold
Mixed
GBP/USD
Bullish
USD/JPY
Mixed
More View more
Real Time News
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/PO93mIKAZP
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here: https://t.co/KDjIjLdTSk https://t.co/CHE6IOq3K5
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Learn about the importance of the ISM manufacturing index here: https://t.co/Xr3xtoFpZy https://t.co/Agl1q6EQyu
  • Take a closer look visually at the most influential global importers and exporters here: https://t.co/G58J1dg6y3 https://t.co/UmubxiDXGc
  • Trading bias allows traders to make informative decisions when dealing in the market. This relates to both novice and experienced traders alike. Start learning how you may be able to make more informed decisions here: https://t.co/rz7fqhRoMG https://t.co/e4G1gTGhex
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfJE79 https://t.co/pS48NIuwqX
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/arxYmtQeUn https://t.co/gFVVZTGbe1
  • Forex quotes reflect the price of different currencies at any point in time. Since a trader’s profit or loss is determined by movements in price, it is essential to develop a sound understanding of how to read currency pairs. Learn how to read quotes here: https://t.co/CNtqrKWDBY https://t.co/nHXiNJhLes
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here: https://t.co/7t4BzmLg8w https://t.co/h0TmJcZeqr
  • $USDCAD sold off aggressively last week, putting it into position to test the important 2017 low; trading bias is neutral to bearish. Get your market update from @PaulRobinsonFX here: https://t.co/sphxUAW9TB https://t.co/ZhsTeJOOM8
AUD/USD Eyeing China Trade Data, ASX 200 and Hang Seng May Decline

AUD/USD Eyeing China Trade Data, ASX 200 and Hang Seng May Decline

Margaret Yang, CFA, Strategist

AUD/USD, ASX 200, HANG SENG INDEX OUTLOOK:

  • AUD/USD is steady early Monday but China import/export data may see volatility spike
  • Australia’s ASX 200 index may extend losses for a third day, testing support at 5,820
  • Hong Kong’s Hang Seng Index attempts to find support at 24,500. US markets are shut for Labor Day.

AUD/USD Outlook:

Australian Dollar traders will keep a close eye on China Balance of Trade data for clues about the demand for goods from the world’s second-largest economy. The data will likely have an impact on the Australian Dollar, which has exhibited a historic sensitivity to Chinese data due to the economic link between the two countries.

Market forecasts flag a 7.5% rise in exports and a 0.2% increase in imports from a year ago. A better-than-expected reading will likely boost the commodity-linked currency, whereas disappointing figures will likely do the reverse.

As the US markets are shut for the Labor Day holiday, Asia Pacific currencies may experience thinner liquidity than usual, which renders them particularly vulnerable to data surprises and overall event risk. Market volatilityand movements may be exacerbated due to a lack of participants.

China Export vs. Import Trade USD YoY – September (Forecast)

AUD/USD Eyeing China Trade Data, ASX 200 and Hang Seng May Decline

Source: Bloomberg, DailyFX

Technically,the AUD/USD has retraced back to its 20-Day Simple Moving Average (SMA) line after hitting the upper bound of its Bollinger Band last week. The 20-Day SMA, which is now at 0.7253, may serve as an immediate support level for now. The overall trend remains bullish as suggested by the other two SMAs – the 50-Day and 100-Day. A strong resistance level can be observed at 0.7390 – the 200% Fibonacci extension level. It may require a strong positive catalyst and upward momentum to break above it.

AUD/USDDaily Chart

AUD/USD Eyeing China Trade Data, ASX 200 and Hang Seng May Decline

ASX 200 Index Outlook:

Australia’s ASX 200 index is set to open mildly lower following last Friday’s 3% decline. US stock futures are falling in early Asia hours and thus may weigh on the broader sentiment. Nonetheless, the release of Chinese trade figures may help to paint clearer picture for the rest of the day.

Technically, the ASX 200 index has found an immediate support level at 5,820 - having it tested twice last week. However, the index has likely broken an “Ascending Triangle” last week and thus has opened further downside towards the next key support level at 5,770 – the 23.6% Fibonacci retracement. The MACD indicator has turned sharply lower, suggesting that sellers are in control.

ASX 200 Index Daily Chart

AUD/USD Eyeing China Trade Data, ASX 200 and Hang Seng May Decline

Hang Seng Index Outlook:

Hong Kong’s Hang Seng Index (HSI) may attempt to find some support at around 24,500 after two bloodbath trading sessions last week. Alibaba (9988 HK) and Xiaomi (1810 HK) are added into HSI with effect from 9th Sep. This will significantly increase the 'tech' weight of the stock benchmark.

Technically, the Hang Seng Index has likely broken an “Ascending Triangle” formed since early August. The MACD indicator has turned firmly bearish. Despite that, HSI may consolidate at around 24,500 first before finding a clear direction. How US stock markets behave this week will have a significant impact on Asian stock indices.

Hang Seng Index – Daily Chart

AUD/USD Eyeing China Trade Data, ASX 200 and Hang Seng May Decline

--- Written by Margaret Yang, Strategist for DailyFX.com

To contact Margaret, use the Comments section below or @margaretyjy on Twitter

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

DISCLOSURES