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
  • S&P 500, Nasdaq Rally After the Fed; 10 Year Yield to Two-Month-Highs https://www.dailyfx.com/forex/market_alert/2021/09/23/SPX-SPY-ES-SP500-Nasdaq-NQ-QQQ-Rally-After-the-Fed-10-Year-Yield-2-Month-High.html https://t.co/peftVleO0y
  • #Bitcoin Outlook: $BTCUSD Bounce From 40K, Fake-out or Shake-out? - https://t.co/ixsRMKgCom https://t.co/KDQv4wgfot
  • While JPY gets clobbered, CHF decides to turn a blind eye to yields $CHF https://t.co/MViWZiiPZ7
  • The surprise 100 basis point cut from the Turkish central bank (to 18%) generated the expected pressure for $USDTRY. That said, I don't think it was the market that decided the momentum should die out at 8.8000 again... https://t.co/4jmOPnzzK9
  • surprised that $NQ is holding up so well with what rates are doing. 10 year yield at a 2 month high, $Nasdaq still holding resistance at prior support https://t.co/UBWBxY2nFC
  • The S&P 500 has recovered all the ground it lost at the start of the week and the Dollar has slumped post FOMC and PMIs. DailyFX's @JohnKicklighter gives a brief overview of the market for Thursday! https://t.co/jihKB44ELn
  • https://t.co/lbNvVbQq4n
  • The future taper isn't enough to urge the Dollar to a critical bullish break. In turn, $EURUSD has reversed shy of of August's trough and keeps in play an inverse head-and-shoulders pattern with a neckline at 1.19 https://t.co/EgUtX6Pmvy
  • USD/CAD testing short-term moving average support. Traders have cut their long exposure over the week. Get your market update from @nickcawley1 here:https://t.co/iEL5cbFnHs https://t.co/6kLkUFkFvU
  • In the West, that qualifies as a default action. Let's see how it is treated in the world's second largest economy https://t.co/PKWy7SE8Dt
Australian Dollar Outlook Remains Bleak Following Release of RBA Minutes

Australian Dollar Outlook Remains Bleak Following Release of RBA Minutes

Brendan Fagan,

Australian Dollar, AUD/USD, Reserve Bank of Australia, RBA Minutes – Talking Points

  • Australian Dollar remains under pressure as Covid cases rise
  • Reserve Bank of Australia highlights health concerns, uncertain outlook
  • Weakening Chinese data continues to weigh on Aussie sentiment

The Reserve Bank of Australia (RBA) released the minutes from its most recent policy meeting, with market participants looking closely for any potential shifts in policy guidance tone. The minutes highlighted that the health crisis continues to play a large role in the implementation of accommodative policy, given that the near-term outlook remains highly uncertain. While financial conditions remain highly accommodative, the RBA indicated that it will continuously review the state of asset purchases. Of note, some members considered delaying the ongoing taper of asset purchases. Despite current struggles, the base case scenario for the RBA remains that growth will continue to rebound in 2022. Members have agreed that the central scenario for the economy is that conditions for raising rates will not be met before 2024.

Australian Dollar Outlook Remains Bleak Following Release of RBA Minutes

Courtesy of the Reserve Bank of Australia

The situation regarding Covid remains bleak in Australia, as Sydney reported its deadliest day of the entire pandemic on Monday. Major cities remain under lockdown, with armed forces on the streets limiting total traffic. Sydney is entering its 8th week of lockdown as the Delta variant wreaks havoc on the economy. Australia’s struggle against the Delta variant come as official numbers indicate just 26% of people above the age of 16 are fully vaccinated. Although major cities remain under strict lockdowns, case numbers continue to rise. The resurgence of a third wave of Covid highlights the potential for a double-dip recession in Australia, with the RBA highlighting that the near-term outlook has always been filled with uncertainty.

AUD/USD Daily Chart

AUD/USD Chart

Chart provided by TradingView

AUD/USD continues to trade sideways despite growing fears over the Delta Covid variant in Australia. Local lockdowns throughout the country, coupled with weakening economic data from China, may continue to weigh on the Aussie. Retail sales and industrial production data from China came in weaker than expected last week, piling on the back of a severe drop in US consumer sentiment. Economic data, along with “Fedspeak” regarding a possible taper outline in the fall may also keep AUD/USD suppressed at current levels. Currently, the pair continues to float above the support zone found between 0.7300 and 0.7320. Should this level prove to hold, a retest of the September 2020 swing high around 0.7414 may be on the cards.

AUD/USD 30 Minute Chart

AUD/USD Chart

Resources for Forex Traders

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

--- Written by Brendan Fagan, Intern

To contact Brendan, use the comments section below or @BrendanFaganFX on Twitter

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

DISCLOSURES