Potential volatility with RBA meeting minutes release
|AUD - Australian Dollar
The AUD fell throughout yesterday’s trading day, almost touching the resistance point of 0.6800 at 0.6795. After a tumultuous last week, the AUD is expected to see further volatility with the release of the RBA monetary policy meeting minutes tomorrow midday.
Released 11 times a year, the minutes are a detailed record of the Reserve Bank Board’s most recent meeting. It will provide in-depth insights into the economic conditions that influenced their decision on where to set interest rates.
The AUD opened at 0.6795 against the USD this morning.
Key Movers
Traders are betting on the Euro to fall through the psychological level of $1.10 this month as the European Central bank prepares a stimulus package amidst the recent global economic downturn. Policy maker Olli Rehn said the package would be “impactful and significant” and would be better for the bank to overshoot than undershoot market expectations.
Furthermore, we can expect to see further short-term volatility as the US-China trade war continues to develop. The temporary license granted to Huawei by the US Commerce department is due to expire today, with expectations that they will extend it another 90 days permitting the Chinese firm to continue to purchase supplies from US companies.
All eyes are on the Economic Policy Symposium, held in Jackson Hole, Wyoming this upcoming Saturday. Attended by central bankers, finance ministers, academics and financial market participants from around the world, Federal Reserve Chair Jerome Powell’s speech is the highlight of the day as they look for signals of further rate cuts.
Expected Ranges
AUD/CAD: 0.8920 - 0.9035 ▼
AUD/EUR: 0.6050 - 0.6150 ▼
GBP/AUD: 1.7795 - 1.8115 ▲
AUD/NZD: 1.0630 - 1.0510 ▲
AUD/USD: 0.6715 - 0.6820 ▼
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