Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

Daily brief: AUD/USD breaks lower as global sentiment deteriorates on geopolitical tensions

Asia-Pacific markets set for a move lower after downbeat US trading session; complicating Fed path as commodity prices rise and AUD/USD breaks to a fresh multi-year low and looks ready for more losses.

Source: Bloomberg

Tuesday’s Asia-Pacific outlook

Asia-Pacific markets look ready to extend an overnight market slide. The S&P 500 and Dow Jones Industrial Average posted losses of 0.75% and 0.32% at the closing bell. An escalation in geopolitical tensions stemming from the situation in Ukraine and Russia’s stepped-up attacks that have reportedly targeted several cities, including Kyiv, are putting traders in a cautious stance.

The United States published a broad list of export controls late last week.

The Biden administration's move specifically targets China's ability to access US-born semiconductors. It is perhaps the highest-profile move against China since the US-China trade war started in 2018. It also signals another escalation in the strained US-China relationship.

Grain markets most notably reflected the rising fears that an agreement to secure Black Sea exports made earlier this year may be reversed.

Wheat futures trading in Chicago surged by more than 6% in the current contract. Corn, soybeans, and cotton prices were higher as well, despite a strong US dollar. Gold and silver prices fell against higher nominal and real yields.

Australian consumer confidence data from Westpac for October and August final building permits are on today’s calendar. The Japanese Eco Watchers Survey for September is another in-focus data point for today. Later this week, Chinese credit and inflation data are due, providing the latest picture on efforts by Chinese policymakers to boost economic growth amid deteriorating financial conditions cause by rising rates abroad. September new yuan loans are seen rising to 1.8 trillion.

Australian dollar technical outlook

AUD/USD is trading at the lowest level since April 2020 after a 1% overnight drop. The MACD, on a weekly basis, is picking up downward momentum, with the daily timeframe showing a similar picture. Prices look ready to continue falling deeper into early 2020 levels over the short term, with little notable resistance since that time.

AUD/USD daily chart

Source: TradingView

This information has been prepared by DailyFX, the partner site of IG offering leading forex news and analysis. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.


The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.

Start trading forex today

Find opportunity on the world’s most-traded – and most-volatile – financial market

  • Trade spreads from just 0.6 points on EUR/USD
  • Analyse with clear, fast charts
  • Speculate wherever you are with our intuitive mobile apps
Find out more

See an FX opportunity?

Try a risk-free trade in your demo account, and see whether you’re onto something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off
Log in now

See an FX opportunity?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Get spreads from just 0.6 points on popular pairs
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform
Log in now

See an FX opportunity?

Don’t miss your chance. Log in to take your position.

Take advantage

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

You might be interested in…

<h3>How much does trading cost?</h3>
<h3>Find out about IG</h3>
<h3>Plan your trading</h3>

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.