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AUD/USD: Trading the Australia Employment Report

Trading the News: Australia Employment Change

What’s Expected:

Time of release: 05/12/2011 1:30 GMT, 21:30 EST

Primary Pair Impact:AUDUSD

Expected: 17.0K

Previous: 37.8K

DailyFX Forecast: 10.0K to 25.0K

Why Is This Event Important:

Employment in Australia is projected to increase another 17.0K in April after expanding 37.8K during the previous month, and the ongoing improvement in the labor market should spur a bullish reaction in the high-yielding currency as policy makers maintain a positive outlook for the region. A

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Risk Aversion Sets in on Debt Ceiling Worries

Risk aversion is the name of the game today in forex trading. Forex traders are looking for ways to find safe haven, and that means that the U.S. dollar is inching higher — in spite of worries surrounding the debt ceiling debate.

There still appears to be no compromise in sight as rivals in the U.S. Congress present their own plans. With the House and the Senate controlled by different political parties, a debt ceiling agreement seems far off, and the deadline is fast approaching.

For now, that means that forex traders will look for safe haven in currency trading. However, things could change quickly if the U.S. begins defaulting and the credit rating is downgraded.

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What is Spread? FX Explained

To understand the concept of spread in foreign exchange trading, first consider the way in which currency is exchanged in the foreign exchange market. During your research, you have no doubt come across the term ‘currency pair’. In all forex transactions one currency is being exchanged for another and the way in which prices are quoted in forex markets is as a currency pair. For example if you wanted to use US dollars to purchase Australian dollars, you would need to consult the AUD/USD currency pair. The first currency in the pair is known as the base currency and the second currency is known as the quote currency. The price is the amount of quote currency you need to buy one unit of base currency.

For example: When this article was written, the AUD/USD currency pair was trading at 1.0676. So f

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USD: Understanding Potential Impact Of House Vote

Based upon the price action in the foreign exchange market, everyone who wants to sell dollars ahead of the debt ceiling votes has already done so. The U.S. dollar remains weak but did not lose much more in terms of value over the past 24 hours.  For the most part, the markets are in wait and see mode as everything will depend on the House vote scheduled for 6pm ET this evening. The vote will be on House Speaker Boehner’s bill and if his legislation survives the vote in the House (which will be a close one) it will move to the Senate.  If the House rejects Boehner’s bill, it could lead to a slight sell-off in the U.S. dollar Read more text…

GBP/USD Signals – July 21, 2011

Click on image to enlarge

Currency: GBP/USD Strategy: Ichimoku Signal: Sell Trade Description: Trend below Kumo and retracing 0.5, 0.61 Fib resistance level, Tenkan sen crosses Kijun sen. I will sell at 1.61599 or 1.62498. Stop Loss: 1.63611 Target: Open Duration: One week trade

Neither DailyForex nor the author is responsible for the outcomes resulting from trades that are based upon these signals. We are providing these signals as a guideline for interested traders, not as a commitment to profitable trading. Online Forex trading involves high risk and is not suitable for all investors. Before deciding to trade you should carefully consider your investment objectives, level of experience, and risk.

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Daily Forex Update: AUD/USD

Analyst, Autochartist

AUD/USD has just completed the uniform Rising Wedge chart pattern identified by Autochartist on the daily charts. The Quality of this chart pattern is measured at the below average 4 bar level as a result of the low Initial Trend and Clarity (rated at the 2 bar and the 3 bar level respectively) and significant Uniformity (7 bars). This chart pattern is continuing the prevailing uptrend visible on the daily, weekly and the monthly charts.

The bottom of this chart pattern (Point C on the chart below) formed at the combined support made out of the round price level 1.0400 and 50% Fibonacci Retracement of the sharp preceding upward impulse. Point A formed when the price retraced down from the resistance trendline of the preceding correction to the aforementioned upward impulse (as is shown on the second chart below).

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Commodity Currencies Trade Higher than the U.S. Dollar

Commodity currencies are trading near highs against the U.S. dollar today as concerns about what’s next for the U.S. debt ceiling dominate financial markets.

Indeed, the Aussie, loonie and kiwi are all trading high against the U.S. dollar as investors turn to gold, oil and other commodities that generally do well when the U.S. dollar is lower. These commodity currencies receive support from higher commodity prices.

With a U.S. debt default becoming a possibility, many investors are bracing themselves for what could be next: Another global financial crisis and a possible U.S. dollar crash. 

AUD/USD: Trading the Australia Consumer Price Report

Trading the News: Australia Consumer Price Index

What’s Expected:

Time of release: 07/27/2011 1:30 GMT, 21:30 EST

Primary Pair Impact:AUDUSD

Expected: 3.4%

Previous: 3.3%

DailyFX Forecast: 3.3% to 3.5%

Why Is This Event Important:

The headline reading for Australian inflation is expected to increase at an annualized pace of 3.4% in the second-quarter, which would be the fastest pace of growth since the end of 2008, and the consumer price report could spark a bullish reaction in the AUD/USD as it raises speculation for higher interest rates. A

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