The Australian dollar is rising significantly supported by higher copper prices and strong Asian markets

The Australian Dollar climbed 0.52% as the best performer buoyed by a 2.7% rise in Copper and strong Asian markets.

The Australian dollar is rising significantly supported by higher copper prices and strong Asian markets


The Dollar Index (USD/DXY) closed flat subdued trading. The Australian Dollar climbed 0.52% as the best performer buoyed by a 2.7% rise in Copper and strong Asian markets. The Shanghai Composite Index jumped almost 3%, bringing its three-day rally to over 6% on news that China plans to bolster growth. Wall Street stocks gained on solid earnings. Turkey’s Lira plummeted 3% as the Turkish Central bank left interest rates unchanged, which is what Erdogan wanted.

Outlook: Markets turned upbeat lifted by China’s plans to increase spending and boost growth amidst a looming trade war with the US. The Chinese economy has been slowing this year, so it’s something they had to do anyway. Rod Stewart sang in 1976…”It’s gonna be alright”. Yeah…

Trading View: The yield on the US Ten-year bond slipped to 2.95% from 2.96%. Japan’s 10-year JGB yield stuck to 0.07%. Germany’s 10-year Bund yield closed at 0.39% from 0.40% yesterday.

Data releases yesterday were mixed. Euro-area PMI’s were broadly positive but have slowed down since the beginning of the year. US Flash Manufacturing mostly matched forecasts. Australian Headline and Trimmed-Mean CPI will be important for the Aussie today. The European Central Bank rates policy meeting is tomorrow. Friday sees the US Q2 annualized GDP report.

Sterling rallied 0.3% against the Dollar and Euro as UK Prime Minister Theresa May would lead negotiations on the UK’s departure from the European Union. This took away some uncertainty from the Brexit outcome and buoyed the Pound.

USD/DXY – The Dollar Index finished virtually flat at 94.603 (94.646 yesterday). The Dollar traded to a high overnight at 94.861. Immediate resistance today lies at 94.80 and then 95.00. The overnight low traded was 94.40 and that should remain the immediate support for today. The next support can be found at 94.20. We are still within a wider 94.20-95.50 range and there is no reason to see any change in that wider range just yet. For today look to trade 94.30-94.80. Just trade this range shag.

AUD/USD – again the Aussie Battler rallied off its lows when it was looking softest. The rally in Asian stocks and commodities boosted the Oz. AUD/USD finished 0.52% higher at 0.7418, up from 0.7382 at New York’s close. The Aussie traded to an overnight high of 0.74342. Immediate resistance lies at 0.7440 and then 0.7480, which is key. Immediate support can be found at 0.7400 and then 0.7370. Overnight low traded was 0.73595. The Australian CPI release will be important for the Australian Dollar. The Trimmed-Mean CPI (which is the preferred gauge of inflation for the RBA) is forecast flat for Q2 at 0.5%, bringing the annual rate to 1.9%. Likely range today 0.7360 – 0.7460. Just trade this range shag. “It’s gonna be alright”.


GBP/USD – finished at 1.3147, up 0.31% from 1.3099 yesterday. GBP/USD traded to an overnight high of 1.31594. Immediate resistance can be found today at 1.3160. The next resistance level is at 1.3180. Immediate support lies at 1.3130 and then 1.3110 with strong support found at 1.3070. 

There is speculation that negotiations are leading to a “no-deal” Brexit. Which means that all the previous permits and accords would fall into limbo. There would be no more free trade between the UK and the EU. WTO tariffs would come into play and there would be border checks (there are none now). This would result in long delays in the movement of goods. The risk for another Sterling flash crash builds. For now though, look to trade within established ranges, a short speculative market should continue to support GBP/USD on dips. Immediate support can be found at 1.3120 and then 1.3080. Immediate resistance lies at 1.3190 (overnight high). The next resistance level can be found at 1.3215. Likely range today 1.3080-1.3180. Another range to trade shag.


USD/JPY – closed modestly lower at 111.22 from 111.34 yesterday. USD/JPY traded to an overnight low of 110.96. Immediate support can be found at 110.95 and then 110.75. Immediate resistance lies at 111.50 (overnight high 111.513). The next resistance level comes in at 111.75, followed by 112.00 (strong). The yield on Japan’s 10-year JGB closed unchanged at 0.07%. With the BOJ meeting on rates early next week, look to trade within a 110.50-112.00 range. Today is looking like 110.70-111.70.


EUR/USD – closed with mild losses to 1.1682 (1.1692 yesterday). EUR/USD traded to an overnight high of 1.17169. Immediate resistance is found at 1.1720 and then 1.1750. Immediate support lies at 1.1660 (overnight low was 1.1655). The next support can be found at 1.1620. Euro area Purchasing Manager’s Index (an indicator of economic health) released yesterday was mixed. While the data print is generally positive, growth is slowing. Which is not enough to bring the ECB timeline for a rate hike forward, nor put it back. With the ECB rates policy meeting tomorrow, look to trade a range. Today looks like we will see a 1.1660-1.1730 range.


USD/ZAR – The rand (USD/ZAR) slumped more than 1.3% on Monday, as uncertainty over trade tensions intensified following US President Donald Trump's latest attack on China, and as Eskom announced a dire set of results.

By 18:02 the local unit was trading 0.85% weaker at R13.52 to the US dollar after reaching an intra-day low of R13.57 to the greenback.


Events and economic data releases: Australian Headline and Trimmed Mean CPI (Q/Q); German IFO Business Climate Index; Euro-Zone M3 Money Supply (Y/Y); UK CB Realized Sales; US New Home Sales


Now is your chance to make a profit!

Open an account here!


***Information contained in this newsletter are gathered from third parties and should not be regarded in any way as trade advice or recommendations by CM Trading. CM Trading does not recommend or advise traders or investors in their decision making but merely provides information from the market for its clients as additional information is made available as per the events occurring in the financial markets.



Trading Forex (Foreign Exchange) and Contracts for Differences (CFD’s) is highly speculative, carries a high level of risk and may not be suitable for all investors. You may sustain a loss of some or all of your invested capital, therefore, you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with trading on margin.

© Copyright 2015 – CM Trading – All rights reserved


Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp
Share on email

Recent .

Stock of the Week: Apple in huge demand, beats estimates by billions.

Stock of the Week: Apple in huge demand, beats estimates by billions. Apple beat estimates for quarterly earnings by billions of dollars. We look at …

Read More →
Stock of the week: Facebook makes CEO Mark Zuckerberg $8 billion in just one week!  

Stock of the week: Facebook makes CEO Mark Zuckerberg $8 billion in just one week!   It has been a momentous week for Facebook CEO Mark Zuckerberg who …

Read More →
Big Tech earnings roll in – Huge profits for Google, Microsoft and more! 

Huge profits for Google, Microsoft and more! Major big tech companies have released their quarterly earnings. We look at how some of the world’s biggest businesses performed so far this year!     Google, …

Read More →
MetaTrader 4 vs MetaTrader 5 – which is the better platform?
Bitcoin bounces back: Is buying the dip worth the risk?

Bitcoin bounces back: Is buying the dip worth the risk?  Bitcoin has recovered some of its losses following its fall from a record high of $65,000. Considering the crypto king’s astonishing performance in 2021, should …

Read More →
Oil summit: Waste of time
Oil market outlook: bumpy ride ahead?

2020 has been disastrous for the oil markets, however, it appears that oil has recovered most of its losses and is now hovering near pre-pandemic levels. In today’s article we will take a look at oil’s recent performance and explore the opportunities that may lie ahead.

Read More →
Dollar still on ten month lows while AUD gains
Stock Market Forecast: S&P 500, Dow Jones, NASDAQ Predictions and Analysis for 2021

With 2021 just around the corner, financial analysts are offering their outlook on where the stock market is headed in the coming year — and many of these experts are hoping for a bullish outcome. Read on.

Read More →