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.

Free Trading Guides
EUR/USD
Mixed
GBP/USD
Mixed
USD/JPY
Bullish
Gold
Mixed
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
Real Time News
  • Brexit Minister Barclay says a deal is still very possible $GBP
  • Heads Up:🇪🇺 EUR Euro-Zone ZEW Survey (Economic Sentiment) (OCT) due at 09:00 GMT (15min), Actual: N/A Expected: N/A Previous: -22.4 https://www.dailyfx.com/economic-calendar#2019-10-15
  • Heads Up:🇪🇺 EUR German ZEW Survey Expectations (OCT) due at 09:00 GMT (15min), Actual: N/A Expected: -26.8 Previous: -22.5 https://www.dailyfx.com/economic-calendar#2019-10-15
  • Heads Up:🇪🇺 EUR German ZEW Survey Current Situation (OCT) due at 09:00 GMT (15min), Actual: N/A Expected: -23.0 Previous: -19.9 https://www.dailyfx.com/economic-calendar#2019-10-15
  • - UK Jobs report Employment Change -56k vs. Exp. 23k Unemployment rate 3.9% vs. Exp. 3.8% $GBP https://t.co/9RlVXGdQkE
  • Join @PaulRobinsonFX 's #webinar at 5:30 AM ET/9:30 AM GMT for insight on London #FX and #CFD trading. Register here: https://t.co/AoM3UvLtcF https://t.co/Tk1vGRPN7x
  • What is a doji morning star candlestick? How can you use it in your #tradingstrategy? Find out from @RichardSnowFX here: https://t.co/w7Y4qj2Qkm https://t.co/GJ7bEWhoSG
  • Heads Up:🇬🇧 GBP BOE Governor Mark Carney Speaks In Parliamentary Testimony due at 08:30 GMT (15min) https://www.dailyfx.com/economic-calendar#2019-10-15
  • Heads Up:🇬🇧 GBP Employment Change 3M/3M (AUG) due at 08:30 GMT (15min), Actual: N/A Expected: 26k Previous: 31k https://www.dailyfx.com/economic-calendar#2019-10-15
  • Heads Up:🇬🇧 GBP ILO Unemployment Rate 3Mths (AUG) due at 08:30 GMT (15min), Actual: N/A Expected: 3.8% Previous: 3.8% https://www.dailyfx.com/economic-calendar#2019-10-15
RBA Holds Rates, Fails to Hold Aussie; US Dollar Under Pressure

RBA Holds Rates, Fails to Hold Aussie; US Dollar Under Pressure

2013-12-03 14:00:00
Christopher Vecchio, CFA, Sr. Currency Strategist
Share:

Talking Points:

- The RBA held its main rate steady and tried to weaken the Aussie verbally.

- European currencies back at September/October 2008 highs versus Yen.

- Markets look to quiet ahead of event risk Wednesday through Friday.

To receive this report in your inbox every morning, sign up for Christopher’s distribution list.

INTRADAY PERFORMANCE UPDATE: 13:00 GMT

MAJORS

AUD

CAD

CHF

EUR

GBP

JPY

NZD

(vs USD)

+0.23%

-0.12%

+0.44%

+0.26%

+0.34%

+0.35%

+0.73%

Dow Jones FXCM Dollar Index (Ticker: USDOLLAR): -0.24% (-0.10% prior 5-days)

ASIA/EUROPE FOREX NEWS WRAP

Higher yielding currencies are moving higher on the day although the same cannot be said about risky assets in general. US equity futures are slightly lower on the day and US yields are rather mixed. ‘Mixed’ would also be the best way to describe the US Dollar’s performance over the past several days, it having moved in an approximate 0.7% trading band since November 21.

The main push against the US Dollar today comes not from European FX (although they remain in the thick of things) but rather from the Tokyo session currencies. Of note, the Australian Dollar, after diving back to last week’s lows under $0.9060, has rebounded across the board in tandem with the New Zealand Dollar. The Reserve Bank of Australia kept its main refinancing rate on hold at 2.50% last night, and traders have thus far shrugged off commentary that the Aussie remains overvalued.

RBA_Holds_Rates_Fails_to_Hold_Aussie_US_Dollar_Under_Pressure__body_Chart_1.png, RBA Holds Rates, Fails to Hold Aussie; US Dollar Under Pressure

With perhaps a bit of short covering occurring in the commodity currencies after several days of weakness, a backdrop of steady or weakening US yields today or tomorrow might afford a bit of upside in the AUDUSD the next few days. While we remain bearish on the AUDUSD (given general upside pressure on US yields past week, month, and quarter), a rebound today could offer an opportunity to resell the currency higher:

AUDUSD Daily Chart: July 19 to Present

RBA_Holds_Rates_Fails_to_Hold_Aussie_US_Dollar_Under_Pressure__body_Picture_1.png, RBA Holds Rates, Fails to Hold Aussie; US Dollar Under Pressure

Want to automate your trading or trade baskets of currencies? Try Mirror Trader.

- The AUDUSD has carved out a sideways channel the past four days, between $0.9050 and 0.9160.

- The daily 8-EMA has been respected thus far as resistance during the downtrend the past three weeks.

- A close above the daily 8-EMA (0.9145) would give room for the pair to rebound back into a familiar supply/demand zone since July, between 0.9210 and 0.9280.

- Given the nature of the decline, preference is to sell rallies rather than buy dips.

- Ideal selling zone over next few days: 0.9250/55 (21-EMA) to 0.9280 (descending TL off of October 23 and November 20 highs).

ECONOMIC CALENDAR – UPCOMING NORTH AMERICAN SESSION

There is no data on the North American economic calendar for Tuesday, December 3, 2013.

See the DailyFX Economic Calendar for a full list, timetable, and consensus forecasts for upcoming economic indicators. Want the forecasts to appear right on your charts? Download the DailyFX News App.

--- Written by Christopher Vecchio, Currency Analyst

To contact Christopher Vecchio, e-mail cvecchio@dailyfx.com

Follow him on Twitter at @CVecchioFX

To be added to Christopher’s e-mail distribution list, please fill out this form

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

DISCLOSURES

News & Analysis at your fingertips.