The Dollar has held net steady versus the Euro and Yen, paring intraday losses in the case against the latter, while AUDCAD dropped quite sharply amid the juxtaposition of record lows in Australian sovereign debt yields and a Loonie-supporting 2.5%-plus rally in oil prices.

AUDCAD was showing over a 0.6% loss heading into the New York interbank open, earlier printing a 5-week low at $91.86. The Aussie buck was dented by the yield on 3-year Australian sovereign debt dropping below 1% for the first time ever, while hopes that the US and China will resolve their differences have been fading, which is a big concern for the Aussie. The lack of a planned senior-level meeting between US and Chinese officials ahead of the G20 summit in Japan is starting to cause investors consternation, boding ill for there being any meaningful progress at the summit itself.

The Loonie meanwhile, benefited as crude prices rallied, with the USOIL almost completely reversing yesterday’s dive in posting a high at $53.10, up nearly 4.5% from yesterday’s low at $50.72. News that two oil tankers have been damaged following a suspected attack in the Gulf of Oman drove crude higher. Despite the unexpected jump of oil, the asset remains in an overall bearish outlook since end of April. Hence only a break of $57-57.50 area could rise hopes for strengthening of the positive bias.

Turning back to AUDCAD, the strength of Loonie and the weakness of Aussie, drift the pair at 6-month low, while it is in the third consecutive month of downwards move. The overall bearish outlook of AUDCAD looks to hold strongly,  as the daily , weekly and month lower Bollinger Bands patterns extended southwards and momentum indicators are negatively configured.

AUDCAD

 

Hence as the technical support the continuation of further collapse, the October 2018 low now looks even more possible than before. The move is well on course for a retest of the 0.9170 immediate Support level  (October-December 2018 low ), while given the strength of the negative momentum run (bearish cross in MACD and RSI at 30), the 0.9100-0.9120 Support area which is nearly 9 year’s low, seems to have been already opened.

Disclaimer: Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of purchase or sale of any financial instrument.

Feed news

Latest Forex Analysis

Editors’ Picks

EUR/USD below 1.1200 on Draghi's dovishness, amid Trump-Xi meeting announcement

EUR/USD is trading below 1.1200 after ECB President Draghi opened the door to rate cuts. Presidents Trump and Xi will hold an extended meeting at the G-20 Summit. The news cheered markets.

EUR/USD News

GBP/USD holds on to gains around 1.2550 after Boris wins again

The second ballot for Tories' leadership has been complete. Boris Johnson ended first with 126 votes, followed by Jeremy Hunt, who got 46. Dominic Raab eliminated. Pound showed no reaction to the news.

GBP/USD News

USD/JPY rallies beyond mid-108.00s on Trump's positive comments

Trump said he will have an extended meeting with the Chinese President next week. This comes on the back of Draghi's dovish comments and triggers risk-on trade. Fading safe-haven demand weighs heavily on the JPY and remained supportive.

USD/JPY News

Fed Preview: Proto-easing

Fed Funds 2.25%-2.50% target range predicted to be unchanged. Market expecting confirmation of easing bias into the second half. FOMC statement wording, especially "patient" and the economic projections important.

Read more

Gold surges through $1350 level, back closer to 14-month tops

Gold built on its strong intraday positive momentum and spiked to fresh session tops, beyond the $1350 level during the early North-American session.

Gold News

Majors

Cryptocurrencies

Signatures