AUDUSD

European Open Preview – FOMC minutes and BoC rate decision in the spotlight

Posted on January 9, 2019 at 8:59 am GMT

In the US, minutes from the latest FOMC meeting will be scrutinized for clues on whether a pause in rate hikes is indeed in order In Canada, the BoC will meet and attention may fall on whether policymakers are growing more cautious Overnight, China releases its updated inflation data FOMC minutes eyed for rate guidance amid recession fears The dollar advanced nearly across the board on Tuesday without any major US-specific catalyst, instead capitalizing on weakness in the euro, which [..]

European Open Preview – Dollar down, stocks up on Powell’s flexible policy; China boosts liquidity

Posted on January 7, 2019 at 9:28 am GMT

US Jobs report impress, Powell backs flexible policy China cuts reserve requirements amid slowing economic activity Loonie jumps to 3-week highs Nonfarm payrolls impress but Powell sounds cautious; China takes further monetary easing steps The US Jobs report beat expectations on Friday, brushing away fears of a cooling labour market and a slowing economy. Nonfarm payrolls jumped by 312k in December, while November’s print was revised upwards by 22k. Average hourly earnings also picked up speed to reach a new decade high of 3.2% [..]

Week Ahead – Factory data to remain in focus; BoC to start off 2019 central bank meetings

Posted on January 4, 2019 at 2:28 pm GMT

Industrial production out of Germany, the UK and France will dominate the economic calendar next week, keeping investors’ attention firmly on the growth outlook for 2019. The Bank of Canada will be the first of the major central banks to hold a policy meeting this year, while the highlight in the US will be the ISM non-manufacturing PMI and speeches from Fed policymakers. However, with market moves being mostly driven by jitters about the growth outlook at the moment, economic [..]

European Open Preview – Yen spike triggers ‘flash crash’ as growth fears intensify

Posted on January 3, 2019 at 9:06 am GMT

Yen soars after Apple profit warning sends jitters across FX markets Aussie plunges to multi-year lows versus the dollar and yen Oil back down after sharp gains the previous day Volatility sweeps financial markets Currency markets had a volatile start to the new year as risk sentiment took another turn for the worse in the first two days of trading of 2019. The Japanese yen soared across the board as investors fled to safety on heightened concerns about the global [..]

Technical Analysis – AUDUSD tests 0.70 key support for first time in three years

Posted on January 2, 2019 at 11:06 am GMT

AUDUSD broke key support around 0.7020 and dropped to a fresh three-year low of 0.70 in the first trading day of 2019, signaling that the bearish trend is not about to end any time soon. Still, with the price flirting with the lower Bollinger band in the four-hour chart and the RSI trying to gain ground above its 30 oversold limit, some sort of recovery is likely to happen in the short term. However, if the MACD extends negative momentum below [..]

European Open Preview – New year kicks off with low risk appetite

Posted on January 2, 2019 at 9:23 am GMT

Chinese factory activity contracts, feeding growth slowdown fears Yen rallies to seven-month highs, aussie drops to three-year lows Oil extends downtrend into 2019 Stocks have a rough start as Chinese data disappoint Stock markets in Asia started in the red in the first trading day of the year as lower than expected factory data out of the world’s second largest economy added further evidence of a potential slowdown in global growth. The Chinese Caixin manufacturing index crossed unexpectedly below 50 in December for the first [..]

Chinese manufacturing PMIs to spread more gloom at year-end – Forex News Preview

Posted on December 28, 2018 at 2:20 pm GMT

PMI gauges out of China will be one of the few highlights in a light economic calendar next week. The NBS manufacturing PMI is released first on Monday at 01:00 GMT, with the Caixin/IHS Markit manufacturing PMI following on Wednesday at 01:45 GMT. Expectations aren’t high for either indicators of factory activity as China’s economy continues to lose steam from structural reforms such as deleveraging as well as of course the trade war with the United States. The official NBS [..]

Technical Analysis – AUDUSD remains bearish near 35-month lows

Posted on December 28, 2018 at 10:55 am GMT

AUDUSD is seeing some positive momentum today after touching an almost 35-month trough of 0.7016 on Thursday. However, the upside momentum is weak, with the %K and %D lines of the stochastic oscillator posting a so-far unconvincing bullish cross. Looking at the MACD though, there is no sign yet of an upside correction as the histogram continues to fall further below the signal line in negative territory. Immediate support is in the 0.7020 region. Breaching this barrier would push the [..]

European Open Preview – Dollar sags but equities stage comeback

Posted on December 28, 2018 at 9:07 am GMT

US equities stage a major comeback late in the session, close higher Dollar edges lower as Fed rate-hike expectations are almost fully priced out Yen shines, loonie and aussie flirt with lows amid broader risk-off mood US stocks stage an impressive late comeback, but skepticism lingers It was another session characterized by sharp moves in both the currency and equity markets on Thursday amid thinner-than-usual liquidity, and with little in the way of fresh news to drive the price action. [..]

FX year ahead 2019: End of dollar dominance?

Posted on December 24, 2018 at 12:22 pm GMT

As 2018 draws to a close, the heavily sold currencies are set to end the year off their lows, while the US dollar – one of the biggest winners of 2018 – appears on track to start 2019 on a negative footing. While it’s too early to predict a new downtrend for the dollar, expectations that US interest rates are nearing their cycle peak could provide the greenback’s peers some much-needed relief. Yet, several risks remain – ranging from the [..]

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