Weaker AUD ahead of important central bank decisions
Important News for the week:
-
Tue, 08th, 06:30 CET AU RBA interest rate decision.
-
Wed, 09th, 04:00 CET NZ RBNZ interest rate decision.
-
Thu, 10th, 14:30 CET US Unemployment Claims.
-
Fri, 11th, 14:30 CET CA Unemployment Rate.
AUD/USD ahead of RBA decision
The Australian dollar is trading weaker ahead of the RBA interest rate decision on Tuesday as markets fully price in a 25 basis point rate cut to 3.60%.
Slowing growth and easing inflation have raised expectations for further easing later this year. AUDUSD fell towards the 0.6500 level as the diverging
policy outlooks of the Fed and the RBA weigh on the pair. Traders are keeping a close eye on the RBA's forecasts as any dovish signal could send
the Aussie even lower.
Market talk
The Dollar shows mixed sentiment against other currencies. While the EUR is still able to gain the GBP and AUD both lose steam against the
Greenback. Signs of a potential fade in positive risk sentiment for now. The rather quieter summer months might now also cause some burden for
traders. Profit taking should hence be expected. On the other hand oil prices currently keep rising but likely remain capped below the strong bearish
candlestick pattern from last month. A slide in oil might also be a sign of a weakening economy.
Tendencies in the markets
-
Equities sideways, USD stronger, Bitcoin sideways, ETH positive, oil sideways, Silver sideways, Gold weaker, JPY stronger.
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.
