Jump to content

Recommended Posts

AUD/USD Consolidates Around Yearly Low Ahead of US NFP Report

Jul 7, 2022 | DailyFX
David Song, Strategist

AUSTRALIAN DOLLAR TALKING POINTS

AUD/USD trades to a fresh yearly low (0.6761) in July even as the Reserve Bank of Australia (RBA) delivers another 50bp rate hike, and the exchange rate may face headwinds later this week as the US Non-Farm Payrolls (NFP) report is anticipated to show a further improvement in employment.

AUD/USD Consolidates Around Yearly Low Ahead of US NFP Report

 

AUD/USD CONSOLIDATES AROUND YEARLY LOW AHEAD OF US NFP REPORT

AUD/USD appears to be unfazed by the RBA as it consolidates within a narrowing range, and the US Dollar may continue to outperform against the commodity bloc currencies as the Federal Reserve normalizes monetary policy faster than its major counterparts.

Image of DailyFX Economic Calendar for US

As a result, the update to the NFP report may keep the Federal Open Market Committee (FOMC) on track to implement another 75bp rate hike as the economy is anticipated to add 268K jobs in June, and evidence of a resilient labor market may encourage the central bank to move towards a restrictive policy as the minutes from the latest meeting reveals “that an even more restrictive stance could be appropriate if elevated inflation pressures were to persist.

In turn, the FOMC may take further steps to combat inflation as “many participants judged that a significant risk now facing the Committee was that elevated inflation could become entrenched if the public began to question the resolve of the Committee to adjust the stance of policy as warranted,” and it remains to be seen if Chairman Jerome Powell and Co. will continue to adjust the forward guidance at the next interest rate decision on July 27 as “participants stressed that appropriate firming of monetary policy, together with clear and effective communications, would be essential in restoring price stability.

Until then, AUD/USD may fall towards the June 2020 low (0.6648) as it trades to fresh yearly lows in July, and a further decline in the exchange rate may fuel the tilt in retail sentiment like the behavior seen earlier this year.

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      23,618
    • Total Posts
      96,998
    • Total Members
      44,183
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    Sitstartalpinist
    Joined 05/12/23 06:46
  • Posts

    • From what the team of RIF are focused on delivering, FinTech innovators are bound to have the necessary technology and resources to create fully decentralized products for a more transparent and democratic financial system. I believe listing on the aforementioned top exchanges will facilitate the next phase of growth for RIF
    • Hello everyone, At 03h30 UTC there was a bump on AUD/USD because of the Cash Rate data release. I was supposed to enjoy the ride thrue an API call, but my orders were rejected with the reason "ATTACHED_ORDER_LEVEL_ERROR". My working orders entries were 0.66112 and 0.66032. From the time i started to send the order until the rejection, the tick prices were: BID: 0.66042 | OFFER: 0.66102 <sending> BID: 0.66038 | OFFER: 0.66098 BID: 0.66040 | OFFER: 0.66100 <rejection> Can someone explain me how IG decides when to send this error ? I would like to anticipate it. Is it because the spread was at 6pips ?
    • Elliott Wave Analysis TradingLounge Daily Chart, 5 December 23, Bitcoin/ U.S. dollar(BTCUSD) BTCUSD Elliott Wave Technical Analysis Function: Follow Trend Mode: Motive Structure: Impulse Position: Wave((5)) Direction Next higher Degrees: wave I of Impulse Wave Cancel invalid level: Details: Wave 4 may end and the price entering to wave 5 Bitcoin/ U.S. dollar(BTCUSD)Trading Strategy :Bitcoin continues to soar But it is the rise of the fifth wave that will provide early warning of a correction or trend change. and has a chance to reach the level 43719.48, which is equal to 61.8% of the length of wave 1 to wave 3. Bitcoin/ U.S. dollar(BTCUSD)Technical Indicators: The price is above the MA200 indicating an uptrend, Wave Oscillators a Bullish Momentum. TradingLounge Analyst: Kittiampon Somboonsod, CEWA Source : Tradinglounge.com get trial here!         Elliott Wave Analysis TradingLounge 4H Chart, 5 December 23, Bitcoin/ U.S. dollar(BTCUSD) BTCUSD Elliott Wave Technical Analysis Function: Follow Trend Mode: Motive Structure: Impulse Position: Wave((5)) Direction Next higher Degrees: wave I of Impulse Wave Cancel invalid level: Details: Wave 4 may end and the price entering to wave 5 Bitcoin/ U.S. dollar(BTCUSD)Trading Strategy :Bitcoin continues to soar But it is the rise of the fifth wave that will provide early warning of a correction or trend change. and has a chance to reach the level 43719.48, which is equal to 61.8% of the length of wave 1 to wave 3. Bitcoin/ U.S. dollar(BTCUSD)Technical Indicators: The price is above the MA200 indicating an uptrend, Wave Oscillators a Bullish Momentum.    
×
×
  • Create New...
us