RBA 'not on a pre-set path' [Video]
|The Reserve Bank of Australia has now switched to a meeting-by-meeting basis in a copy of the Fed’s move in July. The key phrase was that the RBA is ‘not on a pre-set path’. This sent the AUD lower immediately after the meeting as it is the RBA’s way of trying to balance tackling surging inflation, but in a way that can respond to slowing growth.
The JPY has a pattern of strength during the summer months and the fall lower in US10 year yields on US growth concerns has been strengthening the JPY recently.
Notice too that the AUDJPY pair has a period of seasonal weakness ahead. Between August 02 and August 22 the AUDJPY fell a total of 11 times with an average fall of -2.24%. Will those falls repeat again this year?
Major Trade Risks: If China solves its property crisis and returns to strong growth that could boost the AUD. Also, the JPY could weaken if US 10-year yields rise again on aggressive Fed policy action.
Learn more about HYCM
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.