AUDUSD

Technical Analysis – AUDUSD shifts from neutral to bearish; room for further weakness

Posted on August 16, 2017 at 7:06 am GMT

AUDUSD shifted from neutral to bearish after the market reached overbought levels. Prices were unable to sustain gains above the key 0.8000 psychological level and started to decline from the multi-year high of 0.8065. Downward momentum picked up after RSI fell below 70 and MACD turned back down. There is room for weakness in AUDUSD to extend further and fall below the key 0.7800 level. The 38.2% Fibonacci retracement level of the rise from 0.7328 to 0.8065 is within reach [..]

Forex Market Review (European session) – Dollar climbs as war tensions calm; euro drifts lower after poor industrial performance

Posted on August 14, 2017 at 3:05 pm GMT

During European trading hours, the dollar managed to reverse partially from losses made on Friday, after comments by two US civil officials and the South Korean president on Monday eased war tensions between the US and North Korea. Meanwhile, the euro weakened as data out of the eurozone showed that industrial output in the area missed expectations. Following Trump’s comments on Friday, who warned that the US army was “locked and loaded” if North Korea acted unwisely, the South Korean president, Moon Jae-in, said on Monday in a meeting [..]

Forex Market Review (Asian Session) – Forex markets’ reaction muted on economic data, dollar on rise

Posted on August 14, 2017 at 7:34 am GMT

Forex markets have had a muted reaction to the released economic data during the Asian session. The yen weakened against the greenback despite an upbeat string of figures out of Japan and still ongoing tensions between the US and North Korea. The aussie softened only modestly against its US counterpart even though Chinese data were disappointing. Japan’s economy annually grew 4% in the second quarter, preliminary data released today showed. This is the fastest pace of expansion since the first [..]

Week Ahead – Japan GDP, UK and US retail sales, Aussie jobs in focus

Posted on August 11, 2017 at 3:39 pm GMT

Major data releases next week should help divert some of the attention away from the geopolitical risks back to the outlook for monetary policy. Second quarter GDP growth figures out of Japan will be the main item to watch, followed by retail sales releases in the UK, the US, and China. Inflation data will be out in Canada, the Eurozone and the UK, while the latest employment numbers are due in Australia and the UK. Chinese industrial output and retail [..]

Forex Market Review (Asian Session) – Geopolitical tensions unfold, though rally for safe havens comes to halt

Posted on August 11, 2017 at 7:38 am GMT

Escalating turmoil between the US and North Korea has continued to dominate the news flow in forex markets as the war of words threatens to spill over into army confrontation. However, the demand rally for the safe haven assets came to a halt ahead of European trading. Oil prices dropped, reversing some late night gains. Markets in Asia woke up to news that President Trump increased his verbal threat to North Korea by saying that his earlier comment about “fire and [..]

Forex News – Chinese inflation ticks down, producer prices steady

Posted on August 9, 2017 at 9:48 am GMT

Following a slowdown in Chinese exports in July, Chinese factory prices remained steady in the same month, in what could be a positive sign for industrial profits, while consumer prices experienced weaker growth. The National Bureau of Statistics of China released on Wednesday the consumer price (CPI) and the producer price (PPI) indices for the month of July. According to the numbers, the PPI stood flat for the third consecutive month at 5.5%, as expected, on a yearly basis. Month-on-month the index [..]

Forex Market Review (Asian Session) – Safe-haven assets gain on escalating US-North Korea geopolitical turmoil

Posted on August 9, 2017 at 7:44 am GMT

Geopolitical woes between the US and North Korea escalated overnight following announcements by the presidents of both countries. In response, safe-haven assets such as the yen, Swiss franc and gold strengthened overnight. The dollar index was moderately down ahead of European trading. The escalating situation commanded the news flow during the Asian session, overshadowing other economic developments of significance for forex markets. North Korea announced that its leader Kim Jong Un was weighing a possibility to strike the US Pacific territory of Guam [..]

Technical Analysis – AUDUSD retreats from multi-year highs below key 0.80 level; downside risk increases

Posted on August 9, 2017 at 7:09 am GMT

AUDUSD declined after testing a fresh multi-year high of 0.8065 on July 27. The pair struggled to sustain gains above the key 0.8000 psychological level. The market was overextended on the daily chart as indicated by the RSI which rose above 70 into overbought territory. Momentum signals have shifted to the downside – RSI and MACD are sloping down, suggesting that AUDUSD will most likely have trouble progressing significantly higher at this point. Major resistance is now at 0.8000. Clearing [..]

Forex Market Review (European Session) – Dollar touches 1½ week- high as Job openings hit a record high; oil pares gains amid ongoing oversupply

Posted on August 8, 2017 at 3:54 pm GMT

With political uncertainties in the US in the background and tensions between North- Korea and the US increasing, the dollar managed to recover from yesterday’s losses as US job vacancies reached a record-high in June and drove the currency to a 1½ week- high. Meanwhile, in the commodity markets, oil could not sustain its gains arising from Saudi Arabia’s willingness to cut its oil supplies by more than it pledged, as global oil production does not show any signs of [..]

Forex Market Review (European Session) – Dollar’s weekly losses cut down by solid employment report

Posted on August 4, 2017 at 2:48 pm GMT

The July employment report provided much-needed relief to the beleaguered greenback on Friday, while the pound continued to lose ground on fears the Bank of England would keep rates near record lows for longer. The main highlight of the day was the July jobs numbers out of the United States. The market is keeping a close eye on US economic numbers as they will likely determine whether an additional Fed rate hike will take place by the end of the [..]

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