|Day's range||0.688 - 0.688|
|52-week range||0.6851 - 0.7484|
The Australian dollar broke down a bit during the trading session on Tuesday, but then found enough support underneath the 0.6850 level to turn around a bit. Are we forming a hammer? It’s a bit early to tell but it certainly looks as if we are trying to find buying.
In what was expected to be a busy week has turned into a bit of dud ahead of the FOMC as traders have taken a decidedly defensive posture. The S&P; 500 closed marginally higher but spent most of the day meandering aimlessly as both bulls and bears head for the side-lines.
In today’s piece, I will show You three best trading occasions on the market right now, where You will see the power of the flag, so a technical trend correction pattern. I will show You examples from the past, as well, as occasions for the nearest future.
We’re not expecting too much movement ahead of the Fed’s interest rate and monetary policy decisions on Wednesday. Both the AUD/USD and NZD/USD are expected to remain under pressure because the Reserve Bank of Australia and the Reserve Bank of New Zealand are expected to cut interest rates in the near future. The Fed is not expected to cut rates in June, but its monetary policy statement should open the door for rate cuts in either July or September.
Investing.com - The British pound was trading near its lowest levels of the year on Tuesday as fresh fears over the prospect of a no-deal Brexit weighed, while the Australian dollar was pressured by growing expectations for another rate cut by the country’s central bank.
The RBA talks of further rate cuts as the UK Tory Party Leadership race heats up. Stats out of the Eurozone will also be relevant later this morning.
In the minutes, the RBA pointed out once again that labor market developments are “particularly important” on deciding further easing. We saw this last week following the release of a disappointing Unemployment Rate. It came in at 5.2%, above the 5.1% forecast. Traders have been aggressively selling the currency since this report was released on June 12.
Investing.com - The British pound fell to five-and-a-half month lows on Tuesday in Asia as fears over the threat of a no-deal Brexit resurfaced.
Based on the early price action, the direction of the AUD/USD on Tuesday is likely to be determined by trader reaction to Monday’s low at .6848.
The Australian dollar went back and forth early on Monday to at the very least stabilize, but at this point there’s nothing compelling about the Aussie to get aggressive about. We are at crucial levels, so there are plenty of things to pay attention to.
The concern for traders is not likely whether the Fed cuts rates or not at the June meeting, but how dovish it comes across for cuts in July or September. The market has been driving Treasury yields lower due to uncertainty over trade and geopolitics, the economy has been steady to weaker. Fed policymakers may not be influenced by the external events as much and may maintain focus on the economic data.
Investing.com - The U.S. dollar slipped on Monday in Asia as traders awaited the upcoming Federal Reserve policy meeting later this week where Fed Chair Jerome Powell could open the door to rate cuts later in the year.
The Australian dollar fell during trading on Friday, breaking below the 0.69 handle. That being said, there is still plenty of support underneath so I think that the downside is probably somewhat limited, but you can say the same thing about the upside.
It’s a litmus test for the U.S economy today. Retail sales and consumer sentiment figures will give the FED an idea of how consumers really feel.
Investing.com -- The dollar was lower against the yen and euro early Friday in Europe but higher against risk proxies such as the Aussie dollar as traders shunned risk ahead of a weekend set to be marked by geopolitical tensions.
Oil prices rose around 3.8% in the early hours as two Saudi Oilers got attacked in the Gulf of Oman. Cable down as Brexit Hardliner Boris won the first ballot. Weak Jobless Claims strengthened rate cut hopes.
The Australian dollar initially fell during early trading in Asia on Thursday, as there was a significant amount of “risk off” attitude around the world early. However, the market has since bounced from the psychologically and structurally important 0.69 handle.
The Greenback is on the back foot early as the Asian markets respond to softer inflation out of the U.S. Australian employment figures failed to impress this morning.
The data indicates that last month’s election failed to revive the jobs market, while risk events such as global politics and the escalating trade dispute between the United States and China continued to weigh on the economy.
Investing.com - The Australian dollar fell against its U.S. counterpart on Thursday following the release of a disappointing jobs report, while the Japanese yen rose on safe-haven demand.
The Australian dollar fell a bit during trading on Wednesday, as we continue to see a lot of negativity creep back into this market. However, there’s a lot of noise between here and several other levels, so ultimately this is a market that looks very likely to be choppy still.
Based on the early price action, the direction of the AUD/USD the rest of the session is likely to be determined by trader reaction to the short-term 50% level at .6943.
Technical analysis gives us some hints, that this movement should be continued, at least on the Dollar Index and the EURUSD but do we have the same situation on other pairs with the USD?