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
  • 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/N2GqH7QoOd
  • RT @mkraju: Manchin signaling he’s open to $1.75T for social safety net bill, per source briefed on matter, but it’s unclear where the pric…
  • Further your forex knowledge and gain insights from our expert analysts @JohnKicklighter and @JStanleyFX on $USD with our free Q4 market analysis guide, available for free today. https://t.co/7G7pWntiyY #DailyFXGuides https://t.co/XYCRng3hEW
  • RT @JournalistRoss: From CNN's @mkraju: The goal among Democratic leaders is to have a vote Wednesday or Thursday on the infrastructure pac…
  • *Reminder: Weekly Strategy Webinar tomorrow at 8:30am ET on @DailyFX !! https://t.co/lxd5fZnn4H
  • 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/L15w1dzclc
  • Wow Liverpool... https://t.co/9Mx6Xmw4iS
  • With the $SPX, Bitcoin and Fed 2022 rate forecasts pushing record highs; the heavy economic docket for the coming week will make for some loaded trading potential. The events and markets I'm looking at ahead: https://www.dailyfx.com/forex/video/daily_news_report/2021/10/23/SP-500-Reversal-ECB-Decision-FAANG-Earnings-Top-Volatility-Themes-Next-Week.html https://t.co/1SGirtalSb
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM7kO6a https://t.co/wdbXlx7ChB
  • Further your stock trading knowledge and gain informed market analyses from our expert analysts @HathornSabin and @JMcQueenFX on Indexes with our free Q4 guide, available today.https://t.co/YQG1aaIT8C #Dailyfxguides https://t.co/qqYNi1RA2F
ASX 200 May Continue to Gyrate Despite Strong Trade Data, Dovish RBA

ASX 200 May Continue to Gyrate Despite Strong Trade Data, Dovish RBA

Brendan Fagan,

ASX 200, Australian Trade, Reserve Bank of Australia, China, Commodities, Iron – Talking Points

  • ASX 200 falters as Reserve Bank of Australia remains dovish, leaves policy unchanged
  • Australia posts record trade surplus in August, surprising market participants
  • Anxiety continues to grow over US debt ceiling resolution, potential Evergrande default

Australian equities may look to reverse their recent downtrend as economic data and a dovish central bank paint a rosier picture for the country than many expected. The ASX 200 and the Australian Dollar have been under pressure of late, mired by China weakness and a potential US default. Australia surprised market participants with trade data for August, posting a A$15.07 billion trade surplus. The jump in August represents a new record high for Australia’s balance of trade, well surpassing the expected decline to A$10.3 billion. Included in that release was a revision higher for July’s trade balance.

In data released from the Australian Bureau of Statistics, exports during August jumped 4.1% to A$48.5 billion. The large jump in exports was driven by insatiable demand for liquid natural gas and coal products, which helped offset the pinch felt from falling iron ore prices. Demand for commodities remains hot as China continues to face rolling blackouts amid a widespread energy crunch. Despite recent tensions between Beijing and Canberra, exports to China totaled a whopping A$18.6 billion in August.

Australian Economic Calendar

ASX 200 May Continue to Gyrate Despite Strong Trade Data, Dovish RBA

Courtesy of the DailyFX Economic Calendar

The Reserve Bank of Australia (RBA) announced on Tuesday at its October policy meeting that it was leaving monetary policy unchanged, with the conditions for rate hikes not set to be satisfied until 2024. Bond purchases were also kept intact at A$4 billion per week. While vaccination rates continue to rise and lockdowns are slowly lifted, the continued dovish stance of the RBA could pave the way for a move higher in regional equities. AUD/USD declined on the release of the policy statement, as global appetite for risk appears to be relatively suppressed.

ASX 200 Weekly Chart

ASX 200 May Continue to Gyrate Despite Strong Trade Data, Dovish RBA

Chart created with TradingView

Despite the bedrock of a dovish central bank and improving economic data, Australian equities may remain under pressure in the near-term. Seasonality effects saw equities and risk appetite dimmish globally in September, with some of those effects still lingering. The decline in risk-on sentiment was echoed in AUD/USD price action, with the FX market’s “barometer of risk” getting hit hard over Evergrande fears, US debt ceiling anxiety, and the Federal Reserve moving ever closer to tapering.

On longer-term timeframes, the ASX 200 appears to potentially be rolling over. With a notable top put into the robust move off of the Covid-lows of March 2020, the Aussie index has retraced to a key level: the pre-pandemic high. With global sentiment continuing to wane as fears grow over China and the US debt ceiling, the ASX 200 may continue to trend lower. A break below the pre-pandemic high could see a retest of the psychological 7,000 level. A bounce on an improved fundamental outlook may see the index retest a key pivot zone around 7,350.

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