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
Bearish
GBP/USD
Mixed
USD/JPY
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
Bullish
Oil - US Crude
Bearish
Bitcoin
Bearish
More View more
Real Time News
  • RT @FirstSquawk: Five rockets hit near US embassy in Iraq capital: security source
  • #DidYouKnow crude #oil is a natural resource that differs in composition depending on its location. Find out more crude oil facts from @WVenketas here: https://t.co/Ssp486xz2J #OOTT #CommoditieswithDailyFX https://t.co/NVBR5kbYgb
  • The $JPY may resume a five-year rise against the New Zealand Dollar if prices make good on a Head-and-Shoulders pattern, pushing NZD/JPY toward 70.00. Get your market update from @ddubrovskyFX here: https://t.co/DXPkAjLoLp https://t.co/nyi5fDamr8
  • RT @RaoulGMI: Thanks Fitwit! Lots of great, smart ideas of playing the downgrades of BBB. The collective hive mind is truly incredible and…
  • transmissibility is increasing — news flow hasn’t been kind over the weekend — should be an interesting globex open #CoronavirusOutbreak https://t.co/UZYoZOQZ7V
  • The #Euro may be preparing to turn lower against the Japanese Yen, resuming a two-year downtrend and setting the stage for a decent below the 111.00 figure. Get your market update from @IlyaSpivak here: https://t.co/jtjJ1H2eRi https://t.co/epncUWJTSo
  • The $JPY has faded into 2020 as market risk appetite has held up and hit demand for haven assets. USD/JPY now challenges a key medium-term downtrend, but hasn’t topped it yet. Get your market update from @DavidCottleFX here:https://t.co/4X6vgCgkB7 https://t.co/bLWABxibOo
  • My pleasure! https://t.co/R7ArKNjCNO
  • The range in USD/CAD broke with aggression this week as CAD sellers pushed the currency after the Bank of Canada rate decision. Get your $USDCAD technical analysis from @JStanleyFX here: https://t.co/8oHoLLqvtR https://t.co/8ZXx6GbKAn
  • The $USD may fall against the Swedish Krona and Norwegian Krone if commentary from officials at the Davos forum uplift market mood and pressure haven-linked currencies. Get your market update from @ZabelinDimitri here: https://t.co/CPmNJSgHXY https://t.co/RdM0cbyfSf
Australian Dollar Extends Advance, Japanese Yen Weighed By Risk Appetite

Australian Dollar Extends Advance, Japanese Yen Weighed By Risk Appetite

2010-05-10 14:58:00
David Song, Currency Strategist
Share:

05.10_DWL1

The Australian dollar extended the rally from the previous week to reach a high of 0.9079 during the overnight trade and is the best-performing currency amongst the majors on Monday as investors raise their appetite for risk. The AUD/USD remains nearly 70pips higher from the open after moving a whopping 131% of its daily ATR, but the bearish divergence in the 30-minute RSI suggests that the rally is losing steam as price action fails to hold above the 240-SMA at 0.9049. As a result, the exchange rate may continue to pare the overnight advance ahead of the Asian trade and close the gap from the120-SMA at 0.8956, but the Australian dollar is likely to face increased volatility over the next 24 hours of trading as Treasurer Wayne Swan is expected to deliver the 2010-11 Federal Budget report on Tuesday at 9:30 GMT.

05.10_DWL2


05.10_DWL3

The Japanese Yen weakened across the board, with the USD/JPY rallying to a high of 93.54, but the lack of momentum to retrace the decline from last Thursday may keep the pair within a broad range over the week as investors weigh the prospects for a sustainable recovery in the global economy. The dollar-yen is 56pips higher on the day after moving 128% of its average true range, but the rally appears to be tapering off as the exchange holds below the 240-SMA at 93.47, with the 30-minute RSI falling back from a high of 71. As a result, we may see the pair work its way back down towards the 120-SMA at 92.44, but another leg lower could lead the pair to test the 50-Day SMA at 92.22 for short-term support.

05.10_DWL4

Join us to discuss the outlook for the major currencies on the DailyFX Forums

To discuss this report contact David Song, Currency Analyst: instructor@dailyfx.com

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

DISCLOSURES

News & Analysis at your fingertips.