Aussie Little Changed After RBA Monetary Statement

OctaFx Analyst Team OctaFX

The US dollar was little moved in the Asian session. This followed disappointing Institute of Supply Management (ISM) PMI data. The data showed that the activity of purchasing managers in September was lower than expected. The PMI rose to 59.8, which was lower than the 60.1 traders were expecting. It was also lower than August’s 61.3. At the same time, the ISM manufacturing employment rose to 58.8 from August’s 58.5.

The Canadian dollar remained at multi-month high levels against the US dollar after the new NAFTA deal was announced. US President, Donald Trump, praised the ‘wonderful new trade deal’ stating how it was beneficial to US farmers and the auto sector. He had previously described NAFTA as “the worst trade deal” ever signed and just last week it seemed that the US would move forward without Canada. This new agreement will calm the markets as the confrontation with China continues. Traders hope that another deal will be made between the US and Japan and the European Union.

The Aussie was little changed after the RBA’s monetary policy statement. The bank left interest rates unchanged at 1.75%. This was an expected move and is the reason why the Australian dollar made no major movements. In a statement, the bank sounded upbeat about the economy and pledged to leave rates unchanged for some time. They believe that this will continue to support the economy. Part of the statement said:

Inflation is around 2 per cent. The central forecast is for inflation to be higher in 2019 and 2020 than it is currently. In the interim, once-off declines in some administered prices in the September quarter are expected to result in inflation in 2018 being a little lower than otherwise.

EUR/USD

The EUR/USD pair is trading at 1.1570. This is the same level as at market close yesterday. It is also along the lower band of the Bollinger Band on the four-hour chart below. The Money Flow Index has fallen below the neutral level of 50 while the Parabolic SAR signals a bearish move. The pair’s path of least resistance is likely lower. Traders should watch out for the 1.1500 level.

USD/CAD

The USD/CAD pair is trading at 1.2803, which is close to yesterday’s close of 1.2800. This was the lowest the pair has fallen in four months. The Bears Power indicator has moved from a multi-month low to almost zero. At the same time, the Bulls Power is close to zero. This is an indication that the bulls and bears are torn about the next moves for the pair. There is a likelihood that a small upward retracement will happen before the downward momentum continues.

AUD/USD

The AUD/USD pair was little moved after the RBA released the monetary policy statement. The pair is trading at 0.7229, which is in line with the 14-day moving average and at the middle band of the Bollinger Bands. It is also below an important support as shown below. With no major monetary change, the pair’s downward trend is likely to continue.

Author

OctaFx Analyst Team

OctaFX

OctaFX is a market-leading forex broker, providing personalised forex brokerage services to customers in over 100 countries worldwide.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.