FX Handover: AUD and GBP Offered In Mild Risk-Off Session

RBA minutes confirmed they’re more likely to cut, sending AUD/JPY to its lowest level since January’s flash-crash.
House prices in Australia fell -7.4% YoY.
The British pound was offered on news that Philip Hammond is prepared to resign over Theresa May’s spending plans. Cable touched a fresh multi-month low.
Trump says immigration agency will ‘begin the process of removing millions’ of undocumented immigrants next week, just after confirming he wants to send 1,000 troops to the Middle East.
Japan and US are ‘likely’ to meet at the G20, according to Japan’s finance minister Aso.
Westpac’s measure of Australian consumer sentiment ticked lower to 103.5 for Q2 – on par with Q3 2018, which itself was a 5-year low.
Indices traded cautiously higher in hopes of a dovish Fed meeting tomorrow although, overall, volatility remains subdued.
JPY and CHF are the strongest majors, AUD and GBP are the weakest.

Matt Simpson, CFTe, MSTA CityIndex

Author

Matt Simpson, CFTe, MSTA

CityIndex

Matt Simpson is a certified technical analyst who combines charts and fundamentals to generate trading themes.

EUR/USD makes a U-turn, focus on 1.1900

EUR/USD’s recovery picks up further pace, prompting the pair to retarget the key 1.1900 barrier amid further loss of momentum in the US Dollar on Wednesday. Moving forward, investors are expected to remain focused on upcoming labour market figures and the always relevant US CPI prints on Thursday and Friday, respectively.

GBP/USD sticks to the bullish tone near 1.3660

GBP/USD maintains its solid performance on Wednesday, hovering around the 1.3660 zone as the Greenback surrenders its post-NFP bounce. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold holds on to higher ground ahead of the next catalyst

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of modest losses in the US Dollar and despite firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.