Sorry mates! Just like its comdoll buddies the Aussie took a step back from its consecutive gains and posted a loss against the dollar when risk aversion took over the markets. AUD/USD dropped to an intraday low of 1.0652 before it capped the day with a 20-pip loss at 1.0688.
Too bad Australia’s mixed economic reports just didn’t cut it! Yesterday the private sector credit printed a bit better than expected with a 0.2% gain in August, while the AIG manufacturing index just missed its previous 43.3 reading at 43.3.
If you’ve been watching the markets with Happy Pip a couple of hours ago then you’ll know that Australia’s retail sales and private capital expenditure reports came in better than markets had expected. Retail sales in July ticked 0.5% higher against the 0.1% slip in June, while private capital expenditure rose by 4.9% when analysts were only expecting a 4.1% growth.
The next report out from the Land Down Under will be its commodity prices report at 6:30 am GMT so sit tight while waiting for it! Or better yet, ask Happy Pip on how she’s trading the Aussie this week!
After getting rejected at the previous day high a couple of times at 1.0720 yesterday, Aussie bulls finally gathered enough swag during the New York session to push AUD/USD past the level and end the day 48 pips above its opening price at 1.0739. Hollah!
Thanks to positive data both from China and Australia, the Aussie was able to avoid the fate of its European counterparts which ended the day with losses against the dollar.
China’s manufacturing PMI for August printed at 50.9 and indicated that manufacturing activity picked up during the month as the figure was higher than the 50.7 reading we saw for July. HSBC’s version of the report also hinted that business activity in the sector accelerated when the report for August came in at 49.9 following July’s 49.8 figure.
On the domestic front, we saw that consumer spending in Australia surged by 0.5% in July. The figure might have been a pleasant surprise for Aussie bulls since analysts had only predicted a 0.3% uptick following the 0.1% contraction in retail sales that we saw in June.
For today our forex calendar is blank for reports from The Land Down Under. Keep tabs on the much-awaited NFP report from the U.S. as this would probably rock the charts. Make sure you give Forex Gump’s most recent article to better anticipate the report though. Good luck mates!
High-yielding currencies buckled under the onslaught of risk aversion last Friday, and the Aussie was no exception. AUD/USD fell to an intraday low of 1.0627 at the release of a depressing U.S. NFP report before it leveled off to an 83-pip loss at 1.0655.
Though the economic board was empty in the Land Down Under last Friday, the huge disappointment in the U.S. NFP figures was enough to keep traders busy. The data printed no growth in the month of August when analysts were expecting at least 68,000 workers to find jobs. What’s more, July’s figure was revised downward!
Will the Aussie have any chance this week? After all, Australia will release top tier economic reports including the RBA interest rate statement tomorrow at 4:30 am GMT, Australian GDP report on Wednesday at 1:30 am GMT, and the country’s own employment figures this Friday at 1:30 am GMT.
But those fireworks won’t start until tomorrow. For today traders only have the mixed second-tier economic reports from Australia to deal with. The AIG services index clocked in a reading of 52.1 in August after it showed a reading of 48.8 in July. Then, the MI inflation gauge released a couple of minutes ago also showed a 0.1% decrease in August from a 0.3% increase in July.
If those reports aren’t enough to get your blood racing, then maybe the ANZ job ads and company profits report today at 1:30 am GMT might interest you. Oh, and watch out for gold prices too, will ya? I hear Happy Pip also watches its price action to observe its correlation to the gold-related Aussie.
Talk about going down under! The Aussie lost ground against both the U.S. dollar and the Japanese yen as risk aversion loomed over the markets yesterday. AUD/USD closed at 1.0547 while AUD/JPY ended 9 pips above the 81.00 handle. Will today’s RBA monetary policy decision give the Aussie a chance to rebound?
The RBA is set to make its interest rate decision at 4:30 am GMT today. Although the central bank is widely expected to keep rates on hold at 4.75%, traders will be focusing on the accompanying statement. Recall that Governor Stevens was a little more dovish than usual in their previous rate statement, saying that there are plenty of downside risks to the Australian economy. He pointed out that the euro zone debt crisis and the prospect of a double-dip recession pose several uncertainties, which was why they decided to keep rates on hold.
Economic data from Australia has been mixed recently so traders could be expecting more downbeat remarks from Stevens today but, if he expresses confidence in their economy, we might just see the Aussie breathe a sigh of relief. Stay on your toes!
If you love roller coasters, then you probably have been enjoying trading the Aussie! Due to the amount of high profile economic events in the past 24 hours, the Aussie has exhibited a lot of movement across the board. AUD/USD, for instance, rallied above 1.0600 from 1.0547, fell back down below 1.0500 and then rose to 1.0580!
Earlier today, Australia’s GDP report came in better than expected, boosting demand for the high-yielding Aussie. The report showed that the economy grew 1.2% during the second quarter, opposite the 0.9% contraction seen the previous quarter.
No important data release from Australia and the U.S. left today, so I don’t expect any wild movement from the Aussie. Keep an eye out on the previous day highs and lows as they could serve as important intraday support and resistance levels.
Up, up, here we go! The Aussie zoomed up the charts yesterday and gained against the Greenback and the Japanese yen, thanks to strong economic data from the Land Down Under. AUD/USD rallied by roughly 135 pips from its 1.0513 open price while AUD/JPY closed 30 pips above the 82.00 handle. Can it go for more wins today?
Australia’s GDP report released yesterday showed that their economy grew by 1.2% during the second quarter of the year. This was higher than the projected 1.0% growth. On top of that, the previous GDP figure was revised upwards to show a 0.9% contraction instead of the initial estimate of -1.2%. Components of the report revealed that increased spending was the main reason for the strong growth that quarter while exports still lagged by 0.5%.
Up ahead, Australia is set to release its employment data at 1:30 am GMT. This report could also be good news for the Aussie since it is expected to show that hiring jumped by 10.7K in August, more than enough to make up for the 0.1K drop in employment for July. Their unemployment rate is expected to hold steady at 5.1% but stronger than expected employment change figures could even bring this figure down a notch. Stay on your toes!
Tiiiiiiimbeeeeer! It seems as though the Aussie had only rallied on Wednesday in order to set up its big fall yesterday! AUD/USD fell from an intraday high of 1.0662 to finish the day at 1.0579 as it couldn’t overcome the bearishness that came with disappointing Australian employment data. Not cool, Aussie, not cool!
Instead of posting a gain of 10,700 jobs last month, the Australian labor market lost 9,700 jobs! As a result, the unemployment rate rose from 5.1% to 5.3%, a level it hasn’t reached since November 2010.
This came as a bit of a surprise considering that just the other day, Australia posted stronger-than-expected GDP growth. Australia has recorded employment losses two months in a row now. Should we be concerned? Perhaps. This could very well be the start of a trend!
Nothing more to see from Australia today. For now, it’d be wise to keep a close eye on risk sentiment. It was a major market-mover yesterday, and it could continue to drive the markets today.
Risk was definitely not in style last Friday, and the Aussie’s price action is another evidence of it. The Aussie got slammed by the Greenback for the second day in a row with AUD/USD dropping by a solid 124 pips to 1.0455.
Though no economic report was released in the Land Down Under, the Aussie bears got busy selling high-yielding currencies like the comdolls. Apparently, a combo of bearish reports from the euro was enough to push investors away from high-yielding assets. Heck, the euro even registered multi-hundred-pip losses against the dollar and the yen!
Will the Aussie pare back some of its losses today? A report released a few minutes ago revealed Australia’s trade balance clocking in at 1.83 billion AUD trade surplus in July, which is a bit better than June’s 1.82B figure but is still weaker than the expected 1.91B surplus.
No other news report will be released from Australia today, but make sure you keep close tabs at any news reports that might affect comdoll price action! I hear that China has just released its trade figures, which showed a record number of imports and improving lending numbers. As many of you guys know, China is Australia’s largest trading partner and more imports from China could mean more exports from Australia.
No mercy for the Aussie! While most high-yielding currencies were able to squeak out wins, the Aussie was left in Loser-ville as it continued to chalk up losses. AUD/USD ended 96 pips lower at 1.0345 while AUD/JPY closed 87 pips lower at 79.92.
With weak trade balance data dragging it down, the Aussie was no match to its less risky counterparts. According to July’s stats, its surplus didn’t increase as much as forecasts had predicted. Instead of widening from 1.83 billion AUD to 1.91 billion AUD, it only grew to 1.83 billion AUD. Bummer!
So far, today’s data hasn’t been any better. The NAB business confidence index decreased from 2 to -8 last month, suggesting that business conditions are going under in the Land Down Under. Yikes!
No more reports on tap today. In the meantime, be sure to keep risk sentiment in check!
With Australian business confidence hitting a two-year low, the Australian dollar found itself struggling to make any headway on the charts. AUD/USD closed at 1.0318, down 11 pips on the day, while AUD/JPY closed 32 pips lower at 79.39.
Earlier today, the Westpac consumer sentiment report was released and fortunately, the results were much better than my battles with a receding hairline. The index came in at 96.9, which was a solid 8.1% improvement from August’s figure of 89.6.
Still, take note that the index is below the 100 mark, which means that generally, consumers are more pessimistic about the future of the economy. Furthermore, Westpac economists now believe that Reserve Bank of Australia will not be raising rates any time soon due to concerns about the global recovery.
Make that five in a row! The Australian dollar added another day to its losing streak against the Greenback and the yen, with AUD/USD closing at 1.0269 and AUD/JPY landing at 78.71. How low can the Aussie go?
Even though Australia reported an improvement in consumer confidence, with the Westpac consumer sentiment figure printing an 8.1% increase, the Aussie was unable to fight risk aversion yesterday. The credit rating downgrade of two French banks and weak consumer spending data from the U.S. pushed traders to the safe-haven currencies, dumping the higher-yielding ones along the way. It didn’t help that the Aussie was also weighed down by a surprise 4.7% dip in housing starts for the second quarter of the year.
Today, Australia is set to report the MI inflation expectations figure and new motor vehicle sales for August. Inflation expectations dipped from 3.4% to 2.7% in July, prompting many to doubt that the RBA would hike rates this year. However, if we see a rebound in inflation expectations for August, market participants could be less pessimistic about rate hikes. Meanwhile, an increase in new motor vehicle sales could reflect improving consumer confidence, which could provide support for the Aussie.
Despite the release of poor economic data, the Aussie was able to surf higher on the charts and end its 5-day losing streak! After finding solid support at the 1.0200 handle, AUD/USD closed at 1.0320, marking a 53-pip gain for the day.
The Aussie had been one of the major losers over the past week or so, as the markets were beginning to fear that the RBA may have to cut rates later this year. Now, those fears aren’t gone just yet, but in the meantime, risk appetite seems to have picked up. If we see equity markets in the green today, it could be a good day to be an Aussie bull.
Aussie bulls chugged pips during Friday’s trading like tequila shots on happy hour. After tapping an intraday low of 1.0295, AUD/USD traded higher and ended the day 49 pips above its opening price at 1.0369.
Aside from the market’s improved risk sentiment, traders must have also taken profits on their long dollar positions. So with our forex calendar still blank for reports from Australia today, you would do well to keep tabs on the market’s mood today. Keep in mind that the Aussie usually rallies when risk appetite is in play.
Tomorrow, the minutes of the most recent monetary policy meeting of the RBA will be released. If you’re still up at 1:30 am GMT, you may want to read up on what the central bankers from The Land Down Under had to say and you could just make a handful of pips! If they hint that the bank is open to cutting interest rates to spur Australia’s growth amid the slowing global economy, we may just see the Aussie pare its wins against the dollar.
Down she gooooooooes! With risk appetite down in the dumps, the Aussie had difficulty finding buyers and found itself diving down the charts as well. AUD/USD was at 1.0223 at the end of the day, 146 pips below Friday’s closing price.
No reports from Australia yesterday. Price action was purely dictated by risk sentiment! As commodities such as gold took a hit across the board, comdolls such as the Aussie followed suit and ended lower.
But so far, it seems as though the tides may be turning in favor of the Aussie. The most recent RBA monetary policy meeting minutes seem to be providing support for the currency. Nothing new was really presented as the RBA noted uncertainties in global growth and weaknesses domestically. However, in spite of all this, the RBA still maintained that conditions in the business sector as a whole have not drifted far from their long-run average.
More importantly, the minutes revealed that the members of the RBA agree that current monetary policy leaves the Board “well placed to respond to evolving global and domestic economic conditions.” Hmm… Sounds a lot like the old wait-and-see approach to me! Perhaps the RBA wasn’t as dovish as many had expected it to be.
That’s all for today, folks! In the meantime, keep your eyes on risk sentiment as another wave of risk aversion could wipe out the Aussie.
Cowabunga! The Aussie surfed up the charts after it dropped to its intraday low of 1.0148 against the dollar. It traded all the way up to its closing price of 1.0249 which was 16 pips above its opening price.
Aussie bulls should thank the have the RBA to thank for their pips yesterday. According to the minutes of the bank’s most recent meeting, policymakers remain very worried about inflation. They also remarked that economic growth in China, one of Australia’s major trading partners, remains to be very strong despite slowing growth elsewhere in the world.
The minutes might have come off as a pleasant surprise because from what I’ve heard, some market junkies had been bracing for talks of cutting interest rates.
Oh, and it looks like the Aussie’s ride up the charts would continue today. The MI leading index for July came in higher at 0.5% than the 0.1% uptick we saw in June earlier. Don’t get too excited buying the Aussie though. Keep in mind that the FOMC meeting is upon us and we could see a lot on volatility in today’s trading. So be careful!
Did I just watch Junior MasterChef Australia? Those kids may be young, but they do know how to chop things up… just like how the Aussie was diced into bits yesterday! Apparently, even though expected, the market took the Fed’s Operation Twist announcement extremely negative yesterday. This led to a wide-reaching case of risk aversion, with AUD/USD ending the U.S. trading session a whopping 194 pips lower from its opening price that day.
Just in case you have no idea what Operation Twist is, just head on over to Forex Gump’s article on it! He explains what exactly Operation Twist is and what the Fed’s intention is with the program!
Australia doesn’t have any tier 1 reports on the docket today so we could see the Aussie take a break from its wild, wild price action today. Keep an eye out on parity on AUD/USD though – it could serve as strong support for the pair!
Thwack! Like most of the high-yielding currencies, the Aussie was put on the markets’ chopping block yesterday on a huge wave of risk aversion. AUD/USD broke down parity like it was tissue paper and dropped to an intraday low of .9692 before it leveled off to a 295-pip loss at .9762.
Though no major report was released from the Land Down Under, price action in markets reflected investors’ reaction to the disappointing FOMC meeting minutes. Market playas had been expecting more, you see, so the launch of the Fed’s “Operation Twist” suggested that major central bankers are running out of options to keep global economic growth from deteriorating further.
Today only Australia’s leading index is on the docket, and the data released a few minutes ago revealed a 0.1% slip in July, an improvement from June’s 0.8% decline. The day is just starting though. Make sure you keep in touch with risk appetite, aight? We never know when the high-yielding currencies could catch a break!
While other major currencies managed to fight back and regain some of their losses, the Aussie remained in bear county as it marked a new 6-month low last Friday. AUD/USD had fallen as low as .9669 during the day before retracing its steps and closing week at .9768. t appears that concerns about global growth won’t fade away any time soon.
With the exception of the HIA new home sales report, Australia’s economic calendar this week presents nothing of interest. This means that the Aussie’s direction will probably be determined by key data from other major economies, particularly those from the U.S.
Let’s see whether the Aussie will be able to regain its footing and return above parity this week!
Saved by risk appetite! After dropping to an intraday low of .9622 near the London session open, AUD/USD kicked back up and even finished the day with a 3-pip win at .9810. Boo yeah!
And to think that Australia didn’t even release any economic report! Yesterday central bankers and other market movers made reassuring speeches about the euro zone’s debt crisis, which turned out to be positive for risk appetite.
How long can the good vibes last? Australia’s economic list is empty again today, so make sure you stay in touch with any news that might affect risk appetite!
After ranging like a range rover between .9800 and .9700 for a couple of days, AUD/USD finally broke out of its consolidation! It looks like Aussie bulls came out to reprezent yesterday, pushing the pair up the charts to end the day 102 pips above its opening price at .9912.
The Aussie didn’t have any economic report to fuel its rally but fortunately, risk appetite picked up yesterday. Whew!
As for today, we got a piece of positive news from the Land Down Under earlier. The HIA reported that the number of newly-built homes in Australia increased by 1.1% in August after contracting by 8.0% in July. However, this might not be enough to secure the Aussie a win in today’s trading. If you’re planning to buy the currency, you may want to keep your fingers crossed for more good news to come out of euro zone that would keep the positive vibes rolling in the market.