|Day's Range||0.726 - 0.732|
|52 Week Range||0.7203 - 0.8136|
Primarily driving the price action early in the week was risk aversion with fears of Turkish contagion weighing on risky assets. Heading into the week-end, investors also appeared more optimistic that next week’s lower-level trade talks between China and the United States offer some hope that the two countries will find a way to head off a full-blown trade war. Australia’s jobs report missed expectations in July. The Dollar/Yen struggled all week to reverse its two-week decline, with lower Treasury yields and aversion to risk continuing to drive investors into the Japanese Yen.
The Australian dollar has been the proverbial “whipping boy” for all things Sino-American related. This is because the Australian economy is highly levered to the Chinese economy, so it makes sense that perhaps it would have a major influence on the currency.
The Australian dollar rallied a bit during the trading session on Friday, to close out the week on solid footing. As we approached the 0.73 level, we are starting to form a rather important weekly candle.
The Euro rallied slightly higher during the Thursday’s session reaching towards the 1.14 level but due to the presence of strong resistance above, the market rolled over a bit. The British Pound initially tried to rally above the 1.12750 level in the yesterday’s session but failed in its attempt and rolled over. The AUD rallied during the yesterday’s session but later in the day sellers are seen getting involved pushing the price lower.
Investing.com - The U.S dollar was little changed on Friday, while the Chinese yuan slipped after posting its biggest daily gain since January 2017 in offshore trade on Thursday following news that China and the U.S. will resume trade talks later in August.
Based on the early inside move, the direction of the AUD/USD the rest of the session is likely to be determined by trader reaction to yesterday’s high at .7287. A sustained move through .7287 will indicate the short-covering is getting stronger. The inability to overcome .7287 will signal the presence of sellers or weak buyers.
The Australian dollar has rallied early during the trading session on Thursday, as it was announced that the Chinese are sending a delegation to speak to the Americans about trade. That directly affects the Australian dollar, as it is highly leveraged to the Chinese economy, so the rally wasn’t a huge surprise.
While inflation numbers are due out of the Eurozone and Canada, it’s all eyes on the U.S Dollar, with the markets getting ready for U.S – China trade talks.
Investing.com - The dollar eased against a basket of the other major currencies on Thursday, but was supported near 14-month highs amid ongoing concerns over Turkey's currency crisis and fears of an economic slowdown in China.
The market is likely to get a bounce from here but will not be a significant one as the negative sentiment still dominates the market. If the market breaks below the 1.27 level, then it will unwind rapidly towards its next psychologically important level, the 1.25 level.
Overnight, the market received data about the condition of the job market from Australia. The unemployment rate dropped, which was a good sign, but the employment change was worse than expectations. In overall, traders used this data to buy AUD, which is now strengthening across the market.
The main driving force today in the market will be investor aversion to risk. Risk-on, and the Aussie and Kiwi benefit. Risk-off, and they both resume this week’s downtrend.
The Australian dollar drifted a bit lower during the trading session on Wednesday, as we continue to see softness in risk appetite overall. Remember, the Australian dollar is a bit of a “risk on” currency, so pay attention to that and recognize that it will continue to make this market very noisy.
The Dollar slides early, with the Asian equity markets rebounding from heavy losses early as hopes of a U.S – China agreement on trade surface.
Investing.com - The U.S. dollar advanced on Wednesday after hitting another 13-month high in the previous session as safe-haven demand increased amid lingering concerns over the Turkish lira crisis.
If the selling pressure gains momentum then look for a test of the December 23, 2016 main bottom at .7159, the May 24, 2016 main bottom at .7145 or the February 29, 2016 main bottom at .7107. On the upside, the first level to watch is yesterday’s close at .7239. Recapturing this level and turning higher for the session will put the AUD/USD in a position to post a closing price reversal bottom.
The Australian dollar continues to look soft overall, as we have a light of moving pieces out there that can affect global trade. By global trade, you should think China, and that of course is with the Australian dollar is so highly leveraged to, the Chinese economy.
Inflation numbers out of the UK will need to jump to hit pause on the Pound’s demise, while U.S retail sales could influence a resurgent Dollar.
The U.S. dollar was stronger against other currencies on Tuesday, as political tensions eased and the Turkish lira recovered. The Turkish lira rallied on Tuesday, breaking a 5-day losing streak after the country's central bank pledged to provide liquidity in response to a meltdown that has unsettled global markets. Turkish Finance Minister Berat Albayrak is expected to hold a conference call with investors from the U.S., Europe and the Middle East on Thursday, his first since assuming the post almost two months ago.
Traders looking for increased volatility during the Asian trading hours should be looking for the best pairs and strategies to maximize their profit. In this article, we will learn the most basic things a trader should know before start trading the Asian forex markets.
The pair continued to suffer in the Monday’s session initially lower at the open but reversed some of its momenta during the American session. The Euro had lost a significant part of its value in the last two trading sessions due to fears of contagion on European Banks from the economic crisis in Turkey. The negative sentiment prevailed in the market throughout the Monday’s session as the market is very concerned about the entire Turkey situation.
Since today’s session begins with the AUD/USD in the window of time for a closing price reversal bottom, the key level to watch today will be yesterday’s close at .7272. We’re looking at three possible scenarios: Rally, Break or Closing Price Reversal Bottom.