Riding a strong wave of risk appetite, the Australian dollar bounced off recent lows and soared higher, as AUD/USD climbed 69 pips to finish at 1.0320. Will we see more of the same this week?
Earlier today, retail sales figures were released and unfortunately, came in in the red. Sales dropped by 0.4% last month, after it was anticipated to have risen by 0.2%. This has set the Aussie off on a rough start, but let’s see if we’ll see a reversal later in the day.
We could see more action on AUD pairs tomorrow, when the RBA releases its latest interest rate statement. Expectations are that we’ll see no rate change but seeing as how unpredictable the markets have been, don’t’ be surprised if we do see a change tomorrow. Tune in at 4:30 am GMT to find out the results!
Are you ready for today’s big event? AUD/USD seems to be trading carefully lately as Aussie traders await the RBA interest rate decision. At the moment, the pair is edging close to the 1.0200 major psychological support level. Will it hold?
The RBA is expected to keep interest rates unchanged at 3.00% in today’s interest rate decision, which is scheduled at 5:30 am GMT. However, some economists believe that a rate cut could be in the cards since Australia has been printing bleak economic figures recently. For instance, Australia printed a 0.4% decline in March retail sales yesterday, weaker than the estimated 0.2% increase and the previous month’s 1.3% rise.
Note that an actual rate cut or hints of implementing one in their next decision could eventually push AUD/USD below the 1.0200 major support level. Reassuring comments from RBA head Stevens, on the other hand, could provide support for the pair. With that, make sure you keep your eyes and ears peeled for the accompanying statement also!
The Aussie just went down under folks… down under support that is! Thanks to a surprise from the RBA, the Aussie found itself sinking across the chart. AUD/USD eventually ended the day at 1.0182, down 70 pips from its opening price. What the heck happened?
In a major surprise yesterday, the Reserve Bank of Australia rocked the markets by bring its baseline rates to its lowest level ever. Central bankers looked at the state of the domestic and global economy, decided they didn’t like what they saw, and dropped rates by 25 basis points, bringing interest rates down to 2.75%.
With manufacturing, service, and construction industries showing little signs of growth and the labor market taking a huge hit last month, its no surprise that the RBA is taking a dovish stance on monetary policy. Keep in mind though that the central bank might not be done just yet, and we may see another rate cut by the end of the year.
That said, make sure you check out my buddy Forex Gump’s latest post as he’s got the 411 on the RBA interest rate decision!
The Aussie just couldn’t catch a break! AUD/USD tested the major 1.0200 handle in yesterday’s trading but failed to close above it. By the end of the New York session, the pair was down 16 pips from its opening price at 1.0167.
Traders probably held back from buying the Aussie ahead of the much-anticipated employment report from Australia. In case you were still snoozing when the report was released, it might surprise you to know that it came in well above expectations!
Markets were only bracing for a measly increase of 11,500 in jobs for April. However, data from the Land Down Under printed at 50,100! To top it off, the job increase translated to a lower unemployment rate from 5.6% in March to 5.5% in April.
This led to a huge rally on AUD pairs. Now the question is, will the rally carry on? You be the judge. Keep tabs on the Aussie and watch out for signs of reversals or continuation!
Just when it looked as though the Aussie was finally gearing up for a major comeback, it was crippled by a strong U.S. jobs report. AUD/USD rallied early in the day to tap a high of 1.0255, only to come crashing down and finish at 1.0080.
As I had mentioned yesterday, the Aussie got an early boost from some really strong employment reports. Not only did the job market see an increase of 50,100 jobs (more than four times the consensus forecast!), but the unemployment rate also unexpectedly fell from 5.6% to 5.5%.
However, this wasn’t enough to keep the Aussie afloat against the Greenback. As the U.S. published jobs data of its own, the markets took the Aussie lower, snatching away all of its gains and forcing it to fall to levels not seen since July of last year!
Will this continue to dictate AUD/USD price action for the rest of the day? Well, it looks like it! The RBA monetary policy statement, which was released just minutes ago, didn’t really move the markets as it didn’t offer any new insights.
Unfortunately, that’s the last we’ll hear from Australia this week. So in the meantime, check out our economic calendar for other potential catalysts!
The Aussie melted like butter and trickled slowly towards parity again last Friday. It marked its fifth consecutive day of defeat as it closed the day at 1.0012. Judging from how the pair has been falling, AUD/USD is showing no signs of bottoming yet.
The Aussie mostly fell due to the strength of the Greenback, rather than its own weakness. Over the weekend, it was reported that the Fed have mapped out a strategy for cutting down on its 85 billion QE program, hinting that tightening could come very soon.
Earlier today, the Aussie got a bit of reprieve as Australia’s Home Loans report managed to beat forecast. It showed a 5.2% increase, up the 3.8% forecast the market had initially predicted. It was also a welcome improvement from the previous month’s 2.1% gain. The NAB Business Confidence survey, unfortunately, printed a negative reading. It was at -2, opposite last month’s reading of 2.
No data left on the docket so expect the Aussie to be driven mostly by events taking place in other major economies. Also watch parity carefully. A break of the level could exacerbate the Aussie’s losses even further.
All major comdolls crashed and burned against the Greenback yesterday, but the Aussie ended up at the bottom of the dog pile. AUD/USD closed below parity for the first time since June 2012 after it reached an intraday low at .9940. What’s up in the Land Down Under anyway?
Blame it on weak economic reports! Though Australia’s home loans data printed a 5.3% growth when only a 3.8% uptick was expected, the Aussie bulls paid more attention to the miss in NAB business confidence and China’s major reports.
Industrial production in China only grew by 20.6% from last April while its industrial production also missed its 9.4% growth expectations at 9.3%. Good thing that its retail sales didn’t add to the mix as it came in at 12.8% as expected.
It also didn’t help the Aussie that the Greenback’s strength weighed on commodity prices. Thanks to a higher dollar, gold and oil are now more expensive, which is bad news for an economy such as Australia’s that is closely linked to gold prices.
At 9:30 am GMT today we’ll see Australia’s Treasury report on its annual budget. The report includes financial objectives, so y’all better not miss this one!
And the Aussie tanks for the seventh day in a row! Without any economic reports on tap from Australia and the effect of the RBA’s rate cut still lingering in the markets, AUD/USD closed with a 64-pip loss at .9891.
I’m not sure if today’s reports would exactly be of help to the Aussie either. Earlier, data on new motor vehicle sales printed a 1.6% decline which is much bigger than the 0.5% contraction that we saw in February. The wage price index for Q1 2013 also fell short of expectations when it printed at 0.7% versus the 0.8% consensus. Yikes!
But as they say, anything can happen. Who knows, the risk appetite could pick up later and allow the Aussie to rally. So be on your toes, ayt?!
After seven straight days of defeat, the Aussie managed to finally fight back and stay afloat versus the Greenback. AUD/USD ended the day at .9884, barely changed from its opening price at .9890.
The pair didn’t exhibit any one directional moves mostly due to the lack of market moving events. No data was released in Australia, while those published in the U.S. were weaker than expected.
Australia’s economic plate will be empty again today, but there are a couple of U.S. reports scheduled for release. Keep a close eye on AUD/USD price action during the U.S. session, as the pair could be indirectly affected by the results.
NINE DAYS. That’s how long the Aussie’s losing streak is now against the dollar. AUD/USD finished another day in the red at .9807 after opening at .9884. What caused the comdoll’s demise this time?
There weren’t any economic report released from Australia. This has led some market junkies to speculate that the sell-off yesterday was caused by the decline in commodity prices specifically, gold. Remember that Australia is one of the world’s largest gold producers and the Aussie shares a positive correlation with the commodity.
No reports are due from the Land Down Under today. With that said, make sure you keep tabs on the commodity markets as the Aussie could take its cue there in today’s trading too!
When will the bleeding stop?? The Aussie gave up more ground to the dollar in Friday’s trading. AUD/USD dropped like its hot below .9800 finishing the day with an 83-pip loss at .9724.
No reports were released from Australia on Friday which may have left the Aussie vulnerable to market sentiment. From the looks of it, it seems like the comdoll got dragged down by the continued drop in gold prices as well as the dollar’s strength.
Today, there are no economic reports due from the Land Down Under. With that said, make sure you keep tabs on commodity markets if you plan on trading the Aussie. Good luck!
Finally, a breather! After TEN consecutive days of losses, AUD/USD was able to finish a day in the green. The pair reached an intraday high of .9828 before closing 78 pips higher than its open price. What brought the Aussie selloff to a halt?
Since gold prices fell yesterday and Australia didn’t release any economic data, we can point our fingers to the overall dollar weakness as explanation for yesterday’s price action. Apparently, a Fed official hinted that a withdrawal in stimulus might not be as soon as many are expecting.
Will the Aussie’s respite extend for another day? A few hours ago Australia’s CB leading index came in at 0.1%, which is lower than the 0.3% figure that we saw last month. The report’s impact on price action was limited though, especially since the RBA meeting minutes is due to come out a few minutes after that.
Don’t even think of missing out on the RBA’s minutes, folks! Word around the hood is that any hint of additional RBA interest rate cuts could extend the Aussie’s losses by a couple more hundred pips. On the other hand, a lack of aggressiveness by the central bank could result to a significant relief rally.
The bears just couldn’t sustain their momentum, as they had two failed attempts at breaking for new lows. AUD/USD found solid support just above .9750, and eventually finished trading at .9804, down just 14 pips on the day.
No huge surprises from the RBA meeting minutes, although one thing to take note of is that they noted that inflation remains subdued, which gives the central bank some leeway for more easing. This wasn’t an explicit, “Heck yea, we going down under with rates!” but it did leave an impression on the markets that the RBA may not be done yet.
Earlier today, the Westpac consumer sentiment report was released and unfortunately, it showed a 7.0% decline in financial confidence. This marked the second consecutive month that the index posted a dismal showing, indicating that consumers are concerned over the state of the economy.
Is there no stopping this Aussie sell-off?! The comdoll dropped to its 10-month lows against the dollar yesterday following news that the Fed would soon begin to taper down its asset purchases. AUD/USD closed at .9700 with a 104-pip loss for the day.
Aside from the dollar’s unformidable strength, it also didn’t help the Aussie that consumer sentiment continued to decline. According to Wespac, consumer sentiment is much lower in May at -7.0% than the -5.1% reading we saw in April.
If I were you, I wouldn’t hold my breath for an Aussie comeback in today’s trading either. Earlier, it was reported that the HSBC manufacturing PMI for China, Australia’s largest trading partner, slipped back into contraction at 49.6 when it was expected to prin at 50.5.
But then again that’s just me. And who knows, we may see risk appetite pick up and boost the Aussie. Good luck!
What a surprise! After spending much of the past 3 weeks on the losing end, the Aussie was able to escape with a victory against the Greenback. AUD/USD dropped to as low as .9593 before the market turned and staged a comeback to take the pair to .9748, where it ended with a 52-pip gain on the day.
The Aussie was knocked down early in the day after China unexpectedly published a weak manufacturing PMI reading. However, it wasn’t knocked out! It got back to its feet and fought back in the middle of the day as the Greenback weakened across the board. Some say the comdolls were supported by a rally in U.S. equities.
In any case, it looks like we’ll have to keep looking outside of Australia for potential catalysts on AUD/USD because the economic calendar is blank for the Land Down Under. For now, I suggest y’all keep track of risk sentiment and commodities, while checking up on the reports the U.S. is set to publish later in the New York session. Good luck and happy trading, folks!
After a quick retracement on Thursday, AUD/USD resumed its slide on Friday and traded below the .9700 handle once more. Will the pair go for a break of .9600 soon?
Australia didn’t release any economic data on Friday, but the stronger than expected U.S. durable goods orders data was enough to boost the Greenback against the Aussie. Make sure you drop by my U.S. economic commentary to see the actual results!
There are no reports due from Australia today, as most banks are on holiday. Australia is set to release its first set of reports on Wednesday, with the MI leading index, HIA new home sales, and construction work data scheduled for the Asian session. Building approvals and private capital expenditure data are due on Thursday while the private sector credit report is scheduled on Friday.
With only medium-tier reports due from the Land Down Under, make sure you keep close tabs on market sentiment and data from the U.S. to figure out how the Australian dollar could behave. Good luck and good trading!
The Aussie sank deeper in the red territory yesterday despite the absence of market-moving data. AUD/JPY reached new multi-month lows while AUD/USD ended the day 13 pips lower than its open price. What gives?
We didn’t see any report from the Land Down Under yesterday, but falling gold prices might have taken its toll on the comdolls. Unfortunately, the Aussie will once again be at the mercy of risk sentiment and its counterparts’ price action as there is no major report scheduled for release again today.
Watch the newswires closely for reports on gold and dollar sentiment as well as any news tidbit that might affect the comdolls’ price action.
Good luck and good trading!
The Aussie was anchored right above the .9600 handle as it refused to budge against the Greenback. After an entire day of trading, AUD/USD finished 1 pip higher at .9633.
The Aussie seems to have been supported by a report from the IMF that stated that central banks from all over the world have been purchasing gold. If they keep this up, it could translate to a much-needed rebound in gold prices, which in turn could help the Aussie erase some of its recent losses.
In other news, Australia just unloaded a few reports, but unfortunately, they didn’t bear good news. First, the MI leading index slipped to print a 0.2% increase, down from 0.6% the previous month. Then, the HIA New Home Sales showed a 3.9% uptick, which is slightly lower than the previous increase of 4.2%. And to cap it all off, the quarterly construction work done report revealed a 2.0% decline in construction activity.
Yikes! So far, this seems to be taking its toll on the comdoll. And if this is a sign of things to come in tomorrow’s building approvals and private capital expenditures reports, then the Aussie could be in for a lot more pain!
Just when we thought the Aussie was gonna go down under, it sprung back to life late in the day! After trading as low as .9527, AUD/USD came storming back to finish above the .9600 handle. What gives, mate?
As I mentioned yesterday, AUD/USD slid down the charts early yesterday thanks a slew of poor economic data. Luckily for the AUD bulls, a poor performance by the Greenback allowed the Aussie to erase its losses during the latter sessions. Make sure you hit up my USD commentary for the 411 on what went down!
As I write this, building approvals and private capital expenditure figures are about to hit the markets. Expectations are that the two reports will bring figures of 4.1% and 0.7% growth, respectively! Make sure to tune in tomorrow to find out the exact details of these releases!
Another good day for the Aussie as AUD/USD avoided another drop. Thanks to Australian and U.S. reports, the pair only dropped to an intraday low of .9583 before ending the day 20 pips higher than its open price.
Australia’s reports might have helped contain the comdoll’s losses. While private capital expenditure fell by 4.7% when many had expected a 0.7% uptick, the Land Down Under’s building approvals had also jumped by a whopping 9.1%, a huge improvement from last month’s 5.5% decline. Of course, it didn’t hurt that data released from the U.S. turned out to be bearish for the Greenback.
Today only the private sector credit report is due for release. The data showed a 0.3% increase in May, which is right in line with market consensus. Don’t be too complacent though! In a few hours the U.S. will print its consumption, consumer sentiment, and PCE reports, which could have an impact on AUD/USD during the U.S. session.
Good luck and good trading!