AUDUSD in play despite dovish RBA
Gary Christie November 4, 2020 8:33 AM
The pair breaks trend posting one of the best intraday performances in a month.
The US Dollar was bearish against all of its major pairs on Tuesday while equities rallied ahead of the U.S. Election. On the US economic data front, Factory Orders increased 1.1% on month in September (+1.0% expected), compared to a revised +0.6% in August. Finally, Durable Goods Orders rose 1.9% on month in the September final reading (as expected), in line with the September preliminary reading.
On Wednesday, the Mortgage Bankers Association's Mortgage Applications data for the week ending October 30th is expected. Automatic Data Processing's Employment Change for October is expected to show that 650K jobs were added on month, compared to 749K jobs added in September. Finally, the Trade Deficit for September is expected to shrink to 63.9 billion dollars on month, from 67.1 billion dollars in August.
The Euro was bearish against most of its major pairs with the exception of the CAD, JPY and USD. In Europe, no major economic data was released.
The Australian dollar was bullish against all of its major pairs. The pair was the largest gainer against its major pairs in Tuesday's trading after gaining 116 pips (1.64%) as traders risk appetite grew ahead of the U.S. election. The pair broke above a declining trend channel and a falling wedge reversal pattern. Could this be a resumption of the prior uptrend that began back in March? As long as 0.699 can hold as support, look for a continuation higher towards 0.725 resistance and ultimately a test of recent highs near 0.742.
Source: GAIN Capital, TradingView
From time to time, StoneX Financial Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.