AUDUSD in play despite dovish RBA
Gary Christie November 3, 2020 9:33 PM
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
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.