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
Oil - US Crude
Bearish
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
  • Commodities Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 1.50% Gold: -0.32% Silver: -0.55% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/Rrzzjyfqmz
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.44%, while traders in US 500 are at opposite extremes with 77.37%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/jjChVG5cqm
  • Indices Update: As of 18:00, these are your best and worst performers based on the London trading schedule: US 500: 1.28% Wall Street: 1.15% France 40: 0.15% Germany 30: 0.08% FTSE 100: 0.01% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/vL9MgyBJF5
  • As risk sentiment takes a turn lower, high-beta currencies such as the Australian Dollar has been among the underperformers. Get your $AUDUSD market update from @JMcQueenFX here: https://t.co/nXadRykouT https://t.co/szzQ0PKNR2
  • Heads Up:🇨🇦 BoC Gov Poloz Speech due at 17:30 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-05-25
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.43%, while traders in US 500 are at opposite extremes with 77.00%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/xjdScTDBXn
  • Commodities Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 2.57% Gold: -0.32% Silver: -0.56% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/nRUi0hbwoO
  • Forex Update: As of 16:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.28% 🇬🇧GBP: 0.25% 🇦🇺AUD: 0.17% 🇨🇭CHF: 0.04% 🇯🇵JPY: -0.07% 🇪🇺EUR: -0.08% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/noQ2M4dTit
  • Indices Update: As of 16:00, these are your best and worst performers based on the London trading schedule: US 500: 1.29% Wall Street: 1.24% France 40: 0.15% Germany 30: 0.10% FTSE 100: 0.05% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/AiUmtoNeVW
  • The British Pound is under renewed selling pressure this morning after BoE deputy governor for banking and markets said that the central bank is keeping ‘our whole tool set under active review'. Get your $GBPUSD market update from @nickcawley1 here: https://t.co/fY4HewczpL https://t.co/AX1qMeq8ks
AUD/USD Price Outlook: Aussie Soars on Coronavirus Vaccine Hope

AUD/USD Price Outlook: Aussie Soars on Coronavirus Vaccine Hope

2020-05-18 22:57:00
Rich Dvorak, Analyst
Share:

AUSTRALIAN DOLLAR FORECAST: AUD/USD PRICE ACTION SPIKES HIGHER AS POSITIVE CORONAVIRUS VACCINE NEWS OVERSHADOWS CHINA TRADE TENSION

  • AUD/USD surges as risk appetite flourishes following the latest coronavirus vaccine headlines
  • Australian Dollar continues to benefit from improving market sentiment and fading FX volatility
  • China trade tension remains a major threat to AUD/USD price action and the broader Aussie

Spot AUD/USD spiked 2% higher on Monday and was driven primarily by widespread Australian Dollar strength. The Aussie climbed throughout the trading session as trader sentiment improved, and appetite for risk increased, which seemed largely catalyzed by the latest coronavirus vaccine headlines.

AUD/USD BULLISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 7% 9% 9%
Weekly 3% 16% 11%
What does it mean for price action?
Get My Guide

Early reports that there might be an effective and safe vaccine for COVID-19 provided markets with a fresh dose of coronavirus optimism. Moderna, a drug manufacturer in the US, announced findings from an eight-person phase I clinical trial for its coronavirus vaccine that showed encouraging results. This propelled the Australian Dollar and other pro-risk assets higher while safe-haven assets, like the USD, came under pressure.

AUD/USD PRICE CHART: DAILY TIME FRAME (23 DECEMBER 2019 TO 18 MAY 2020)

AUDUSD Price Chart Australian Dollar to US Dollar Outlook

Upward momentum recorded by AUD/USD price action so far this week seems to have stalled near the 0.6250 mark. The 125-pip jump notched by the Aussie against its US Dollar peer since Friday’s close reiterates the 0.6400 handle as a major technical support level that shows potential to keep AUD/USD prices bolstered going forward.

Spot AUD/USD might struggle to sustain its advance, however, considering the daunting technical barrier presented by the 0.6550 price zone. This area of resistance is underpinned by the April and month-to-date swing highs. That said, AUD/USD prices could gyrate between the 50-day and 200-day exponential moving averages as forex traders battle over the Aussie-Dollar’s next major direction amid conflicting fundamental forces.

Traits of Successful Traders
Traits of Successful Traders
Recommended by Rich Dvorak
Traits of Successful Traders
Get My Guide

US Dollar outlook has improved recently with the FOMC reiterating its ‘no-to-NIRP’ stance, which could present a bearish headwind to AUD/USD price action. Also, spot AUD/USD might also face downward pressure owing to risk from US-China trade wars 2.0.

Read More – Australian Dollar Forecast: AUD/USD & AUD/JPY Face Pivotal Test

-- Written by Rich Dvorak, Analyst for DailyFX.com

Connect with @RichDvorakFX on Twitter for real-time market insight

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

DISCLOSURES

News & Analysis at your fingertips.