That's the discussion forex traders are increasingly going to be having in the months ahead as President Donald Trump pushes ahead with his late cycle stimulus and associated borrowing. It's one of the reasons many banks, traders, and investors are still holding a jaundiced view on the outlook for the US dollar.
It's also why the US dollar still can't take out 91 in DXY terms, why the Euro was able to hold 1.22 last week, and why the Aussie dollar managed to hold support also.
Of course in the Aussie's case, in forex markets more broadly, the turn around in stocks is a key part of the flight higher. Risk appetite hardly ever fails to give the Aussie a lift.
That, when combined with the break of the trendline Friday from the start of the decline above 81 cents along with the reinforcement of the important support zone in the 0.7740/60 region has the bulls back in control at the moment in AUDUSD.
As I wrote yesterday, a break of 0.7830 opened up the likelihood of a move toward 0.7893 on the 4-hourly charts.
And with the National Australia Bank (NAB) business survey out today and expected to reinforce the solid business operating environment and outlook right now in Australia there is every chance that the Aussie lifts toward that level.
Risk Warning: Trading Forex and Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. The FSG and PDS for these products is available from GO Markets Pty Ltd and should be considered before deciding to enter into any Derivative transactions. AFSL 254963. ABN 85 081 864 039.
Recommended Content
Editors’ Picks
USD/JPY jumps above 156.00 on BoJ's steady policy
USD/JPY has come under intense buying pressure, surging past 156.00 after the Bank of Japan kept the key rate unchanged but tweaked its policy statement. The BoJ maintained its fiscal year 2024 and 2025 core inflation forecasts, disappointing the Japanese Yen buyers.
AUD/USD consolidates gains above 0.6500 after Australian PPI data
AUD/USD is consolidating gains above 0.6500 in Asian trading on Friday. The pair capitalizes on an annual increase in Australian PPI data. Meanwhile, a softer US Dollar and improving market mood also underpin the Aussie ahead of the US PCE inflation data.
Gold price flatlines as traders look to US PCE Price Index for some meaningful impetus
Gold price lacks any firm intraday direction and is influenced by a combination of diverging forces. The weaker US GDP print and a rise in US inflation benefit the metal amid subdued USD demand. Hawkish Fed expectations cap the upside as traders await the release of the US PCE Price Index.
Sei Price Prediction: SEI is in the zone of interest after a 10% leap
Sei price has been in recovery mode for almost ten days now, following a fall of almost 65% beginning in mid-March. While the SEI bulls continue to show strength, the uptrend could prove premature as massive bearish sentiment hovers above the altcoin’s price.
US economy: Slower growth with stronger inflation
The US Dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.