Check out the model new DailyFX trading forecasts for Q3
MARKET DEVELOPMENTS – AUD UP ON US-CHINA TRADE TALK RESUMPTION
USD: A slight pullback for a lot of the morning for the USD from yesterday’s beneficial properties which had been pushed by the steadiness sheet discount, resulting in a internet destructive liquidity influence of round $13bln and thus prompting a bid within the dollar. Softer US information this morning had additionally added to the pullback within the Dollar during which the Philly Fed enterprise index fell to the bottom degree since November 2016. However, the dollar has not too long ago seen a slight bounce again following coordinated feedback by President Trump and NEC Director Kudlow who each embraced a stronger greenback.
GBP: Strong retail gross sales underpinned the Pound, which rose to a excessive of 1.2730. Although, the 1.7bln possibility expiry has stored GBPUSD magnetised round 1.27, whereas EURGBP resides across the 1bln possibility expiry at 0.8950.
AUD: The Australian Dollar is among the many finest performers at present following studies in a single day that China and US commerce talks are set to renew on the finish of the month. Consequently, offering a lift for threat property and excessive beta currencies. Although, additional beneficial properties within the pair has been capped by the sizeable possibility expiry sitting on the 0.73 deal with, whereas the extent at which the US-China commerce talks (Chinese Vice Commerce Minister and Deputy Treasury Secretary) are to be held, indicate that points to be resolved will take a while.
DailyFX Economic Calendar: Thursday, August 16, 2018 – North American Releases
DailyFX Webinar Calendar: Thursday, August 16, 2018
AUDUSD: Data exhibits 66.5% of merchants are net-long with the ratio of merchants lengthy to brief at 1.99 to 1. In reality, merchants have remained net-long since Jun 05 when AUDUSD traded close to 0.75575; value has moved 3.8% decrease since then. The variety of merchants net-long is 4.9% decrease than yesterday and 23.9% increased from final week, whereas the variety of merchants net-short is 8.9% increased than yesterday and 26.8% decrease from final week.
We usually take a contrarian view to crowd sentiment, and the actual fact merchants are net-long suggests AUDUSD costs could proceed to fall. Positioning is much less net-long than yesterday however extra net-long from final week. The mixture of present sentiment and up to date adjustments provides us an additional combined AUDUSD buying and selling bias.
Five Things Traders are Reading
- “US Dollar Strength Pulls Back, EUR/USD Bounces From Yearly Lows” by James Stanley, Currency Strategist
- “EURUSD Price Analysis: Rebound to Hit Resistance Shortly“ by Nick Cawley, Market Analyst
- “Crude Oil Price Outlook: Slope Broken, Confluent Support Under Siege”by Paul Robinson, Market Analyst
- “Market Sentiment Improves on Supportive News from China and Turkey”by Martin Essex, MSTA, Analyst and Editor
- “Crude Oil Price Analysis: Negative Momentum Builds After Key Technical Breach” by Justin McQueen, Market Analyst
— Written by Justin McQueen, Market Analyst
To contact Justin, e-mail him at [email protected]
Follow Justin on Twitter @JMcQueenFX