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RBA rate cut and Dollar strength – What's next?

Frank Walbaum FX Strategies.Asia

Important news for the day

Tue, 12th, 06:30 CET AU RBA Interest Rate Decision.

US tariffs

US President Trump delayed the 100% tariffs on China. They would have come into force today but have been delayed by another 90 days. According to Trump the Chinese government is currently paving the way for extended agreements in regards to economic as well as national security. Also China agreed on such steps with also delaying their implementation of new tariffs over the US. China will keep their tariffs at 10% on the import of US products. Furthermore, the country will take steps to cut tariffs on products, where they won’t be needed. Trade talks remain underway and tariffs will remain at 30% on goods imported from China, whereas US imports into China will remain at 10%.

Market talk

The RBA decided to cut interest rates as expected. The AUD/USD currency pair then started to lose some momentum and currently it looks like some strength of the Greenback returns. Most currencies currently start to trade weaker pushing towards lower levels. In particular Gold prices look interesting as they might weaken. XAUUSD has broken the 50- moving average to the downside based on the daily chart. This might offer a further slide in prices. The price of oil has regained some ground and might move slightly higher for now. The bearish trend in general still seems to be intact.

Tendencies in the markets

Equities sideways, USD stronger, Bitcoin sideways, ETH positive, oil weaker, Silver sideways, Gold weaker, JPY weaker.

Author

Frank Walbaum

FX Strategies.Asia

Frank has been working in the TV business for several years. Acquiring his skills in Germany’s biggest broadcasting station, he then chose to work and live in Asia, which was in 2007.

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