“One, two, three, BREATHE!” The Aussie took a breather yesterday, right after it had hit new two-year highs the day before. AUDUSD fell just over 50 pips from its opening price to close just below .9500. Meanwhile, AUDJPY also took a hit, as it fell from its opening price at 80.73 to finish at 80.10.
With no economic data to help prop it up, the Aussie took some small hits across the board as it bobbed its head to the beat of some risk aversion music. With it being a Friday and with no data coming out once again, I wonder what type of trading we’ll see today. Will this be an opportunity to buy the mighty Aussie at a cheaper price? Or could we see some more profit taking take place?
The Aussie received a lot of lovin’ last Friday as it was able to post new yearly highs. It closed the week out .9588, which was its highest level July 2008.
No data came out of Australia that day, but the rally in the prices of gold and silver gave the chance for the Aussie to stage a stellar performance across the charts. Apparently, gold rose all the way to the 1300.00 handle before retracing some of its gains to end the week at 1296.10. Meanwhile, silver nearly made it to its 30-year high.
No biggies from Australia this week, which means the Aussie will primarily be driven by news from other economies and gold prices. If resistance at the 1300.00 handle in gold breaks, we just may see the Aussie post some magnificent gains again!
Someone call the fire department ‘cause the Aussie is smokin’! It once again posted a fresh 26-month high against the dollar at 0.9645 before it ended Monday at 0.9621 with a 15-pip win.
We didn’t have any economic report on tap yesterday to spark the Aussie fire. However, it seemed like the market’s anti-dollar sentiment and its love for one of Australia’s primary exports, [gold](http://www.babypips.com/forexpedia/Gold), was still burning. Tsss! And that might have been enough for the com-doll to sizzle.
Our [calendar](http://www.babypips.com/tools/forex-calendar/) is still blank for economic hollers from Australia today, so you may want to gauge the market sentiment before you enter in your trades. Good luck and may the pips be with ya!
And it’s at it again! Even without any economic data from Australia, the Aussie was still the cream of the FX crop yesterday when it made new highs against its US counterpart. AUDUSD rocketed to its intraday high of .9687 before closing at .9676.
It seemed that the forex geeks can’t get over last week’s high after Australia printed better-than-expected economic data and the Reserve Bank of Australia (RBA) released its hawkish statements. The good reports were just too tempting to resist, especially when the US has been dropping hints of another QE.
Well, the traders will see another round of economic reports today, starting with the CB leading index report at 12:00 am GMT. The HIA new home sales data will follow at 12:42 am GMT, and better-than-expected figures for both data just might keep the Aussie bulls charged for another day.
[I]“You’re indestructible… Always believe in, because you are GOLD!”[/I] The Aussie sang the Spandau Ballet tune yesterday as it continued to gain against its major counterparts. AUDUSD marked another green candle on the daily chart when it closed 9 pips higher at 0.9685 after hitting an intraday high of 0.9730.
Maybe the positive economic reports from Australia kept the song goin’ for the Aussie bulls. The CB leading index report printed a 0.8% rise after clocking in at 0.6% last June, while the HIA new home sales report eased the decrease from a drop of 7.1% last July to only a 2.6% dip in August.
Some market geeks believe that the gold’s stellar performance in the markets also had something to do with the Aussie’s gains. Gold has been playing around chart highs recently, which is good for the gold-related Aussie.
But wait! What are these red figures I see?! The building approvals report released a few dumbbell reps ago revealed that building approvals dropped by 4.7% last July, with June’s figure revised lower from 2.3% to 0.1%. Uh-oh, even the private sector credit report weakened to a 0.1% growth from the 0.3% August figure! Will the markets see a big pullback with the Aussie pairs, or will the Aussie erase its gains altogether? Watch your charts closely, kids!
AUDUSD’s price action yesterday made me nostalgic of R. Kelly’s “Ignition” as it bounced, bounced, bounced, bounced on the charts. The Aussie rolled its currency booty to a new 2-year high at 0.9734 and got all ‘em bulls wishin’. Too bad it wasn’t able to hang on to its gains and closed the day with a 15-pip loss at 0.9671.
What? I’m an old man with a young dude’s taste for music. That’s how I roll! Anyway, I have a feeling that not-so-awesome reports for August might have kept the com-doll from peaking higher.
The Australian Bureau of Statistics reported that building approvals declined by 4.7% which might have shocked a few bulls since it was expected to have been unchanged during the month. Adding to the disappointment was the private sector credit reading that came in at 0.1% and fell short of the 0.3% forecast.
And the roster of bad figures for August didn’t just end there! We also saw that the AIG manufacturing index was lower during the month at 47.3 than in July when it was up at 51.7.
That’s all that we I’ve got for the Aussie this week. So make sure you get a feel of the market’s risk sentiment before you enter in your trades. Good luck!
Fly high, Aussie! The Aussie continued to gain against its US counterpart last Friday when the weakness in the US economy weighed heavier than Australia’s red figures. AUDUSD capped the week at .9728 after dipping to an intraday low of .9636.
Be careful though, as some traders are betting on the Aussie’s tumble this week. Apparently, the Reserve Bank of Australia hasn’t given the thumbs up yet on another interest rate hike. The recent red figures could still convince them to keep its current interest rate at 4.50%, which could wake up the Aussie bears this week.
Maybe the reports early this week can give us clues on the RBA’s decision. The AIG index report will be released today at 10:30 pm GMT. This will be followed by the retail sales, trade balance, ANZ job advertisements, and NAB business confidence reports tomorrow at 12:30 am GMT.
When you’ve entered your guesses, you can watch for the RBA interest rate announcement on Tuesday at 3:30 am GMT. The figure is pegged to increase to 4.75%, but failure to increase cash rates just might take the Aussie back a few pips.
Are the happy days over for the Aussie? After rocketing against its US counterpart last week, yesterday’s dollar strength and Aussie weakness slipped AUD/USD by 51 pips to its .9680 closing price.
It was too bad that Australia’s reports did little to attract more Aussie bulls. Yesterday’s AIG services index fell to 45.6 from the 47.5 August figure. This was the fifth consecutive monthly slowdown, and implied that the service industry is getting skittish on Australia’s high interest rates.
If the Aussie bulls didn’t like the AIG services report, then they’re not gonna love the reports fresh out of the pip oven! URL=“http://www.babypips.com/forexpedia/Retail_Trade_(Retail_Sales)_-_Australia”]Retail sales in August fell short of expectations when it clocked in a 0.3% growth after climbing by 0.7% last July.
The ANZ job advertisements report also came out weak, printing a 0.7% rise from the 2.4% increase last August. Good thing Australia’s trade balance widened from July’s 1.74 billion AUD to its 2.35 billion AUD figure in August after the country’s coal exports rose.
Maybe an RBA interest rate hike isn’t so sure now, eh? While many forex geeks are pegging the RBA’s decision at 4.75%, some think that the latest disappointing reports might be enough for the RBA to hold the cash rate steady for a while.
The RBA will end all the guesswork today at 3:30 am GMT when they announce their interest rate decision. Keep your fingers crossed on this one!
Talk about a comeback! After dropping early in the Asian session, the Aussie came roaring back, as it cashed in on the combination of commodity strength and dollar weakness. AUD/USD hit a low of .9542 but bounced back up to close above the .9700 handle.
Wondering why the Aussie went Down Under? It turns out that our mates over at the Reserve Bank of Australia decided that it was too early to raise interest rates and kept the baseline rate at 4.50%. This came as a surprise, as many analysts and experts had expected a 25 basis point hike given the good performance of the Australian economy as of late.
Do Glenn Stevens and his merry central bank men know something that we don’t? Perhaps they are wise in keeping rates at current levels. After all, other major economies are still struggling (like the U.S.), while others have even added more stimulus (Japan). It might be better take a wait-and-see approach before tightening their monetary belts once again. And I haven’t even mentioned the strong rise of the Aussie…
In any case, com-dolls like the Aussie all benefitted from a nice run of commodity trading and U.S. dollar selling to make a nice comeback in the latter sessions. Could AUD/USD be headed for parity?
Looking ahead, let’s see if the Aussie can sustain its bullish run when employment data comes out tomorrow at 12:30 am GMT. Last month’s release gave us a nice surprise as more than 30,000 jobs were added to the Australian economy in August. This past September, 20,000 are expected to have been added. Another better than expected figure could give Aussie bulls the fuel they need to keep on climbing the charts.
Is that the all-time high I see AUD/USD threatening right now? Thanks to some sweet employment data released earlier today, the Aussie has shot up and is now testing the all-time high at .9850 as I write!
The just-released employment data came in much better than expected and naturally, the Aussie is making a nice run up the charts. The report printed that 49,500 jobs were added to the economy, more than double than estimate of a 20,200 rise. This was also better than last month’s release, which had showed an increase of 31,600! Boo yeah!
We may continue to see the Aussie dominate the currency markets, as it has been getting a nice boost from commodity trading as of late. Gold in particular, has been rising daily and just a new all-time high yesterday (eh, what’s new?). Yeahhh mannn! I told Pipcrawler that buying some bling-bling was a good idea!
Whew! That was a tough one! The currency bulls managed to push the Aussie higher against the greenback for the third day in a row yesterday even with the market’s profit-taking-like price action yesterday. AUD/USD ended the day 35 pips higher at .9806 after hitting an intraday high of .9917.
Of course, the bulls did have help from Australia’s employment figures. The data released yesterday revealed that while the unemployment rate remained at 5.1%, 49,500 Aussies found jobs in September. This was higher than August’s 31,600 figure, and the expectations of 20,200 more employees. I guess they’d have to invite more people to their weekend barbecues, eh?
Only the RBA deputy Battellino will hit the spotlight today when he gives his speech in Brisbane, so stay sharp for any hawkish or dovish comments!
“Go hard or go home!” was the battle cry of Aussie bulls as they pushed the currency higher up the charts. AUD/USD finished the week off at .9860 and recorded a 54-pip climb for the day last Friday.
Even though Australia didn’t print any reports, RBA Deputy Governor gave the Aussie all the help it needed to extend its gains against the USD. He said the central bank will need to hike rates eventually to curb inflation. Aww yeah!
Earlier today, Australia published its August housing finance report and revealed a weaker-than-expected growth of 1.0% to follow up the 1.8% increase in July. After gapping up over the weekend, AUD/USD is already on its way down in reaction to this report. Will this bad bit of news continue to set the tone for the day?
Tomorrow, we’ll take a look at the NAB business confidence report which may provide additional support for the Aussie if it prints a figure higher than August’s reading of 11. Tune in at 12:30 pm GMT to see the actual results!
Then at 11:30 pm GMT, the Westpac consumer sentiment report will be available. Will we see any changes to September’s reading of 113.2?
Our last look at Australian economic data will be on Thursday at 12:00 am GMT. If inflation expectations rise from the 3.1% recorded in August, it could be a sign that real inflation will be going up in the future, too. You know what that could translate to… Higher interest rates!
As always, stay on guard for any better-than-expected figures that may pump up the Aussie even more!
Score one for the bears! After four consecutive days of rallying, AUD/USD finally stepped down and recorded a decline. Thanks to weak housing finance data, the pair ended at .9841, down from its opening price of .9888.
It didn’t take long for the pair to close its weekend gap. Soon after Australia unveiled a mere 1.0% growth in the number of new loans approved for owner-occupied homes, the pair headed south and hardly looked back. Forecasts were for a 1.1% uptick in August to follow up the 1.8% increase in July.
Some say the weak home loans reflects consumers’ reaction to Australia’s high interest rates. After all, it wasn’t so long ago that the RBA decided to hike rates six times over the course of seven months.
In other news, Australian Treasurer Swan spoke up to boast of Australia’s booming economy. Hey, you’d brag too if your economy was bouncing stronger than most! He looked pretty calm when he added that the Aussie’s recent strength is the natural result of a strong economy. It seems like they’re not too worried about it hitting parity with the Greenback, eh?
Earlier today, the NAB business confidence report printed a decline from a reading of 10 for the month of September. Though this reading is slightly lower than the previous record of 11, it still signals improving conditions in Australia’s private sector as it is well above a reading of 0.
Later on, we’ll see how consumers are feeling when the Westpac consumer sentiment data comes out. Can the report bounce back from the 5.0% decline it printed last month? Find out at 11:30 pm GMT!
And we’re back in the game! After losing to the greenback yesterday, the Aussie and the comdoll gang resumed its gains against the dollar yesterday. The 19-pip gain in AUD/USD might be microscopic compared to the Aussie’s previous gains, but it’s no minor feat if you consider that the pair tumbled to an intraday low of .9768.
The confidence reports might have also helped the Aussie’s rise in the pip charts. While the NAB business confidence index slipped to 10, the Westpac consumer sentiment rose by 3.3% after dropping by 5.0% in September.
No other report can put the cherry on top of the Aussie’s sweet pip-sundae today, but keep your eyes peeled for any reports that can affect comdoll trading!
To infinity and beyooond! The Aussie hit a new all-time high against the Greenback as buyers continued to push AUD/USD closer to parity. The pair rallied 42 pips to end at .9901, but not before reaching a high of .9937. C’mon! Less than 70 pips to go, bulls!
It was pretty much smooth sailing for Aussie bulls yesterday. Price headed north from the very start of the day, with only minor retracements along the way.
No reports came out from the Land Down Under. Instead, the Aussie found support from rising gold prices. Remember, gold is one of Australia’s biggest exports, so rising bling prices means more “ka-ching!” for them!
According to the MI inflation expectations report released earlier today, consumers are expecting to see prices rise another 3.8%. Hmm… It seems like we’ll see another .25% rate hike before the end of the year since this adds further pressure to the RBA to increase interest rates. This bit of news has sparked another strong round of Aussie buying. Now to see if the Aussie hits parity with the Greenback by the end of the day!
Dang, son! There’s just no stopping the Aussie! Spurred by positive inflation expectations early in the day, AUD/USD staged a rally and hit a new all-time high, coming within 6 pips of hitting 1.0000! But in the end, it settled at .9938 to record a solid 38-pip climb.
Inflation expectations rose from 3.1% to 3.8% in September according to the latest report from the Melbourne Institute. This basically set the tone for the rest of the day and caused investors to drive the Aussie higher up the charts.
It seems like investors are pretty convinced that we’ll see a rate hike from the RBA before the year ends. Remember, rising inflation expectations tend to increase real inflationary pressures, giving the central bank more reason to hike rates.
Don’t expect any reports from Australia to come flying into your mailbox today. For now, set your eyes on the CPI and retail sales reports that the U.S. is scheduled to release. Disappointing figures from the U.S. may just cause AUD/USD to burst through parity, so stay sharp!
After finally getting a dose of parity, Aussie bulls decided to chill out, take some profits, and celebrate! This allowed AUD/USD to fall back below the .9900 handle before the end of the week. Still, with a doji forming on the weekly chart, is it time for a reversal?
The Aussie had been on a ridonkulously bullish run, as AUD/USD had posted SEVEN consecutive weeks of significant gains before last week. Hmmm… I wonder what’s coming out this week that could either make or break the Aussie’s run.
The major news to watch out for will be the minutes of the latest RBA meeting due later tonight at 11:30 pm GMT. The RBA has been pretty bullish on its assessment of the economy, but did refrain from raising interest rates earlier this month. It’ll be interesting to see if it suddenly has a change of heart, given the new QE fad that’s been hitting other major economies.
Aside from that red flag, no other biggies coming out from Australia for the rest of the week. Let’s see if we see some profit taking take place, especially in U.S. dollar pairs, as the dollar’s slide may becoming to a short rest. If the dollar reverses its recent losses, it could lead to big moves in AUD/USD.
I’d also watch out commodity trading, as it has been one of the reasons why the Aussie has been poppin’ its collar like a movie star. If gold keeps shining brighter, some of its luster might just rub off on the Aussie. Remember, the Aussie and gold prices have a high correlation, so whenever gold rises, the Aussie stands to benefit!
Taking advantage of the dollar’s inability to keep its gains, the Aussie ramped up the charts and actually finished with a small win. After trading as low as .9801, AUD/USD reversed midway through the European session and closed .9939. Will we see Aussie bulls make another run for parity?
Earlier this morning, the RBA released the minutes of its latest monetary policy meeting. According to our mates at the RBA, their timing was picture perfect in light of the recent developments in the markets. With credit growth slowing down and the rising Aussie taking its toll on the economy, RBA officials felt that by keeping rates steady, they would have more flexibility moving forward.
Hmmm… so no rate hike in October, but is it possible that we may see one in November or December? Some say that the RBA will not want to play the role of a party pooper during the holiday season. Take note though, that they do not meet in January, so it’ll be interesting to see how they handle this scenario.
No biggies coming out later today, but keep an eye out for the Westpac MI leading index at 11:30 pm GMT. The index measures the state of the economy based on 9 different indicators. It is expected to show an overall increase in the index by 0.4%. Given how well the Australian economy has been performing, it wouldn’t surprise me too much if we see the index beat expectations.
The Aussie was one of yesterday’s biggest losers. Unfortunately, it isn’t a contestant in the popular reality TV show! AUD/USD took a massive 257-pip dive and landed at .9682 at the end of the day.
To start the day off, Australia’s MPC published the minutes of its most recent meeting. It explained the reason why it decided to surprise the world and hold rates steady in their last interest rate decision.
According to MPC members, they believe their move was well-timed as credit has become tight in Australia. They also said that they want to remain flexible in the event threats to growth arise. Better to be safe than sorry, I guess!
Nothing coming from Australia today. But Canada’s BOC is scheduled to release its monetary policy report and have its press conference later in the day. You might want to check out what Canada has to offer since the Aussie and Loonie tend to mimic each other’s moves.
The Aussie pulled off a Kanye West (who replaced some of his teeth with diamonds) on the charts yesterday when it exchanged the red pips it got from Tuesday’s trading for a handful of green ones. Ha! AUD/USD started the day at .9682 and closed just a few pips below its intraday high at .9866.
It seems like the com-doll got lucky that the market seemed to have shrugged off the bad vibes brought about by [China’s rate hike](http://http://www.babypips.com/blogs/piponomics/china_gives_dollar_bears_wedgi.html), and it was able to pare some of its losses despite a couple of not-so-awesome reports. Whew!
Yesterday, the [Westpac-MI Leading Index](http://http://www.babypips.com/forexpedia/Westpac_leading_Index) showed that the economy contracted by 0.1% in August, after posting a 0.3% growth rate in July. On the other hand, we saw that skilled vacancies declined by 0.5% in October. Although it was an improvement from September’s -0.7% reading, the fall could imply that recovery in the country could be slowing.
We don’t have anything on tap for the Aussie today. So you may want to get a feel of the market’s sentiment before you enter in your trades so make sure you check out the reports we got from China earlier.